Expiry trade setup: Options data reveals narrow range of 25,400 to 25,500 for expiry; here's all you need to know

NIFTY50

Max call OI:25,500

Max put OI:25,400

(Ten strikes to ATM, 10 July Expiry)

Consolidation continued in NIFTY50 on Wednesday as the index closed 42 points lower. The indecisiveness came from weak global market cues and a delay in the trade deal announcement with the US. However, the index continued to hold the swing low trendline at the 25,240 level, indicating continued overall bullish momentum.

On the technical charts, the benchmark index is trading in a narrow consolidation range of 25,300 to 25,600 for seven consecutive trading sessions. Experts believe that a breakout from this range and a weekly closing above or below these levels could give a directional outlook for the index. On the options data front, the 25,500 calls witnessed heavy and the highest open interest addition on Wednesday, indicating a strong resistance for today’s expiry. Similarly, the 25,400 puts hold the highest open interest on the downside, indicating strong support for today’s expiry.

Bullish outlook

Traders with bullish sentiment can execute a long call strategy by buying 25,400 calls. The strategy would turn profitable after the index moves above 24,516.

Bearish outlook

Traders with a bearish outlook can execute a long put strategy by buying a put strike of 25,500. The strategy would turn profitable after the index moves below the 24,433 level.