Expiry trade setup: Will NIFTY50 hold above 25,200 levels on Thursday? here's what options data indicates

NIFTY50

Max call OI:25,500

Max put OI:25,200

(Ten strikes to ATM, 24 July expiry)

The NIFTY50 rallied over 150 points, crucially breaching the 25,200 resistance zone on Wednesday. The index broke the eight-day consolidation range to close above the 25,200 levels, adding hopes for a bullish upmove towards 25,500. Experts believe the positive global market cues and better-than-expected results from IT major Infosys could lead the index to its next leg of rally.

On technical charts, the index gave a close above the 25,200 zone and crucial 21 EMA levels of 25,180, which indicates renewed momentum at higher levels. Experts believe the index could continue its rally ahead with crucial support of the 25,200 levels.

On the hourly charts, the index is on the verge of a positive crossover of moving averages as the short-term 21 EMA will cross the medium-term 50 EMA and the long-term 200 EMA from below. This positive crossover indicates a sustained bullishness in the index.

On the options data front, after yesterday's rally above 25,200, the 25,200 calls saw heavy unwinding of open interest. On the other hand, 25,200 puts witnessed a heavy open interest addition and also held the highest open interest for today’s expiry, indicating strong support for today’s expiry at 25,200. On the upside, the 25,500 calls hold the highest open interest, indicating strong resistance at these levels.

Bullish outlook

Traders with bullish sentiment can execute a long call strategy by buying 25,200 calls. The strategy would turn profitable after the index moves above 25,262.

Bearish outlook

Traders with a bearish outlook can execute a long put strategy by buying a put strike of 25,250. The strategy would turn profitable after the index moves below the 25,188 level.