Expiry trade setup: Options data indicate a broad range of 24,500 to 25,000 for the expiry; check details

NIFTY50

Max call OI:25,000

Max put OI:24,500

(Ten strikes to ATM, 09 September expiry)

NIFTY50 continued its volatile momentum on Monday as it witnessed selling pressure above the 24,750 levels. Any positive cue on the trade war front fails to hold the market higher due to selling pressure. FIIs have maintained their selling stance, adding to the pressure. In addition, domestic GST 2.0 cues have fueled sector-specific rallies in the market, leaving the benchmark indices behind.

On the technical front, the index formed an inverted hammer candlestick pattern, indicating a reversal to the downside. Experts believe the swing high trend line will act as a crucial resistance for the index. While on the downside, 24,500 remains the strong support level.

On the options data front, the 25,000 calls hold the highest open interest for today’s expiry, indicating a strong resistance. On the downside, 24,500 puts hold the highest open interest, indicating support for today’s expiry.

Bullish outlook

Traders with bullish sentiment can execute a long call strategy by buying 24,700 calls. The strategy would turn profitable after the index moves above 24,835.

Bearish outlook

Traders with a bearish outlook can execute a long put strategy by buying a put strike of 24,800. The strategy would turn profitable after the index moves below the 24,756 level.