Expiry trade setup: Options data indicates narrow expiry range of 25,000 to 25,100

NIFTY50

Max call OI:25,100

Max put OI:25,000

(Ten strikes to ATM, 16 Sep expiry)

NIFTY50 faced resistance above 25,100 levels, indicating some selling pressure at the higher levels. Markets are looking forward to the positive outcome from the trade negotiations between India and the US. In addition, markets await commentary from the Federal Reserve ahead of its monetary policy outcome on 17th September.

On the technical front, the index held the 25,000 key support levels on Monday. On the daily charts, 25,200 remains the next key resistance for the index, above which the index could rally towards previous swing high levels of 25,600.

On the options data front, the 25,100 calls hold the highest open interest, indicating the next resistance at these levels for today’s expiry. On the other hand, 25,000 puts hold the highest open interest, indicating a strong support for today’s expiry.

Bullish outlook

Traders with bullish sentiment can execute a long call strategy by buying 25,000 calls. The strategy would turn profitable after the index moves above 25,117.

Bearish outlook

Traders with a bearish outlook can execute a long put strategy by buying a put strike of 25,100. The strategy would turn profitable after the index moves below the 25,055 level.