Expiry trade setup for Nov 11: Will NIFTY50 bounce back from current levels on expiry?

NIFTY50

Max call OI:26,000

Max put OI:25,000

(Ten strikes to ATM,11 Nov expiry)

NIFTY50 regained the momentum on Monday as positive global cues boosted the investor sentiment. The US markets closed over 2% higher on Monday after reports suggested the US government shutdown could end by Thursday. GIFT NIFTY futures indicate a positive start for the Indian markets on Tuesday.

On the technical front, the NIFTY50 bounced back from the lower levels by closing nearly 0.3% higher. However, the index failed to close above the 21 EMA level of 25,578. Experts believe, index could resume the bullish momentum after the weekly close above 25,700.

On the options data front, the 25,700 calls hold the highest open interest, indicating near-term resistance for today’s expiry. On the other hand, 25,500 puts hold the highest open interest, indicating the near-term support for the expiry.

Bullish outlook

Traders with bullish sentiment can execute a long call strategy by buying 25,500 calls. The strategy would turn profitable after the index moves above 25,635.

Bearish outlook

Traders with a bearish outlook can execute a long put strategy by buying a put strike of 25,600. The strategy would turn profitable after the index moves below the 25,549 level.

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