Expiry trade setup: Will NIFTY50 hold 24,800 support on Thursday?

NIFTY50

Max call OI:25,000

Max put OI:24,800

(Ten strikes to ATM, 31 July Expiry)

The index is expected to open lower on Thursday amid a 25% tariff announcement by the US President on Wednesday. The GIFT NIFTY futures indicate a 180-point gap down opening for Indian markets on Thursday. The index opened higher on Wednesday, but closed with little gains.

On the technical front, the 50 EMA level of 24,934 continues to remain strong resistance for the index. 24,500 zone on the downside remains one of the key strong supports for the index. Experts believe the upside remains capped at 25,000 on a medium-term outlook.

On the options data front, the 25,000 calls hold the highest open interest, indicating strong resistance at these levels. Similarly, on the downside, 24,800 puts hold the highest open interest, indicating a strong support level. However, the gap-down opening on NIFTY50 could see unwinding of positions at these levels.

Bullish outlook

Traders with bullish sentiment can execute a long call strategy by buying 24,850 calls. The strategy would turn profitable after the index moves above 24,820.

Bearish outlook

Traders with a bearish outlook can execute a long put strategy by buying a put strike of 24,950. The strategy would turn profitable after the index moves below the 25,188 level.