Expiry trade setup: Will NIFTY50 hold 25,000 levels on Thursday? Check details

NIFTY50

Max call OI:25,500

Max put OI:25,000

(Ten strikes to ATM, 21 Aug expiry)

NIFTY50 held on to the gap gains for the third consecutive session on Wednesday and closed above the crucial psychological resistance of 25,000. Buoyancy and optimism around the GST reforms is expected to remain key trigger for markets. On the other hand, the FII selling remains a key overhang on the upside for the markets.

On the technical front, the index held on to gains above the 21 EMA levels for third consecutive session. Experts believe a weekly closing above the 25,000 levels will help bulls to continue to march ahead. The next key resistance remains at 25,261, while 24,650 levels remains key support on the downside.

On the options data front, the 25,000 puts hold the highest open interest indicating a strong support for today’s expiry. While 25,500 calls hold the highest open interest on the upside, indicating the strong resistance for the 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 25,080.

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 25,013 level.