Expiry Trade setup: Will NIFTY50 hold 25,500 on expiry; all you need to know

NIFTY50

Max call OI:

Max put OI:

(Ten strikes to the ATM,03 July expiry)

NIFTY50 fell below the 25,500 recent support zone, indicating a strong supply zone at higher levels. The index was dragged by banking stocks like HDFC Bank, ICICI Bank and others. ON the upside, 25,800 remains a key resistance level for now, a closing beyond these levels may only create room for further upside

On the technical charts, the 21 EMA level of 25,136 remains crucial support for the NIFTY50 in the coming weeks to hold the bullish outlook for the Index. On the upside, 25,800 levels remain crucial resistance for the month. Options data for today’s expiry indicates 25,600 as the crucial resistance level as it witnessed heavy open interest addition in Wednesday’s trading session. On the downside, 25,000 puts hold the highest open interest for today’s expiry.

Bullish outlook

Traders with bullish sentiment can execute a long call strategy by buying 25,450 calls. The strategy would turn profitable after the index moves above 24,514.

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 24,407 level.