Expiry trade setup: Will NIFTY50 continue the bullish momentum on Tuesday?

NIFTY50

Max call OI:26,000

Max put OI:25,900

(Ten strikes to ATM, 18 Nov expiry)

NIFTY50 ended near day’s high levels on Monday as traders preferred to buy fundamentally strong stocks during the session. Markets made a positive start and further continued their trade in green amid optimism over a potential India-US trade deal. Traders kept a close eye towards Federal Reserve meeting minutes, which are going to be released on November 20. In the second half of the session, markets added more points and touched the day’s highs.

On the technical front, the index closed above the crucial resistance zone of 26,000, indicating a bullish sentiment. Experts believe the index could to the bullish momentum after closing above 26,000 levels for tomorrow’s expiry session.

On the options data front, the 26,000 calls continue to hold the highest open interest for tomorrow’s expiry. However, the 25,900 puts now hold the highest open interest on the downside, indicating strong support for tomorrow’s expiry.

Bullish outlook

Traders with bullish sentiment can execute a long call strategy by buying 26,000 calls. The strategy would turn profitable after the index moves above 26,076.

Bearish outlook

Traders with a bearish outlook can execute a long put strategy by buying a put strike of 26,100. The strategy would turn profitable after the index moves below the 25,984 level.

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