Expiry trade setup: Will NIFTY50 hold support of 24,500 on Thursday? Here's all you need to know

NIFTY50

Max call OI:25,000

Max put OI:24,600

(Ten strikes to ATM, 14 Aug expiry)

NIFTY50 bounced back from lower levels amid strong and positive global cues. In addition, the news about Prime Minister Modi’s visit to the US for the UN General Assembly meeting and a bilateral meeting with President Trump on trade talks boosted investor sentiments. In addition, the DIIs continued their buying spree on Wednesday with over ₹5,000 crore worth of buying in Indian equities, while FIIs continued to sell Indian equities.

On the technical charts, the index is forming a rounding bottom pattern with deep consolidation near the 24,500 levels. If the index consolidates further at these levels and then breaks out above the 21 EMA level of 24,760, it could rally further towards 25,000.

On the options data front, the 25,000 calls hold the highest open interest on the upside, indicating strong resistance for today’s expiry. Similarly, the downside looks protected at 24,600 as the strike price has the highest open interest on the put side.

Traders with bullish sentiment can execute a long call strategy by buying 24,600 calls. The strategy would turn profitable after the index moves above 24,681.

Traders with a bearish outlook can execute a long put strategy by buying a put strike of 24,650. The strategy would turn profitable after the index moves below the 25,592 level.