Expiry trade setup: Will NIFTY50 hold the 25,200 support on Tuesday?

NIFTY50

Max call OI:25,500

Max put OI:25,200

(Ten strikes to ATM, 23rd Sep expiry)

The NIFTY50 fell over 100 points on Monday amid a sharp fall in the IT stocks. The index held the crucial 25,200 support levels on a closing basis. India VIX bounced back from the multi-year low levels, indicating increased volatility in the index.

On the technical charts, the index now holds 25,200 as the crucial support level, as indicated in the previous day's trade setup. On the upside, 25,500 remains a crucial resistance level. Experts believe, for the index to continue the momentum rally, it needs to close above 25,200 on a weekly basis.

On the options data front, the 25,500 calls hold the highest open interest for today’s expiry, indicating a crucial resistance. On the downside, 25,200 puts hold the highest open interest, indicating a strong support for the expiry.

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 25,267.

Traders with a bearish outlook can execute a long put strategy by buying a put strike of 25,300. The strategy would turn profitable after the index moves below the 25,210 level.

To access a specially curated smartlist of the most traded and active stocks, as well as the OI gainers and losers, simply visit:

In Futures and Options or F&O, long build-up means an increase in Open Interest (OI) along with a price increase, and short build-up means an increase in Open Interest(OI) along with a price decrease. Source: Upstox and NSE.