Trade setup for Sept 1: Will NIFTY50 bounce back above 24,500 on Monday?

NIFTY50

Max Call OI:24,600

Max Put OI:24,400

(Ten strikes to ATM, 02 Aug expiry)

NIFTY50 closed the previous week with 1.8% losses, paring the previous two weeks’ gains. The previous week’s fall was largely induced by the 50% tariffs on India, which took effect from August 27. However, markets are expected to show some optimism in Monday’s trade amid the strongest GDP growth in five quarters. GIFT NIFTY futures indicate a 45-point gap-up opening for today’s trading session.

On the technical front, the index gave a second closing below the crucial 24,500 levels, indicating bearish trend setup for today’s trade. Experts believe the index could find the near-term support at the 200 EMA levels of 24,260.

The options data indicates a narrow range of trade for this expiry at 24,400 to 24,600. On the upside, 24,600 calls hold the highest open interest indicating near term resistance and higher side of the price range. Similarly, 24,400 levels hold the highest open interest on the downside,indicating near term support on the downside.

Stock Scanner Long buildup: -

Short buildup: - Shriram Finance, HCL Tech

Top traded futures contracts: HDFC Bank, Indigo

Top traded options contracts: SBIN 820 CE, SBIN 840 CE

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