Trade setup for August 25: Will NIFTY50 bounce back from current levels on Monday?

NIFTY50

Max call OI:25,000

Max put OI:25,000

(Ten strikes to ATM, 28 Aug expiry)

Indian markets snapped the six-day rally on Friday and closed nearly 1% lower amid profit booking at higher levels. The NIFTY50 failed to close above 25,000 on a weekly basis, and the SENSEX closed below 82,000. The benchmark indices traded under heavy selling pressure due to consistent tariff anxiety and its impact.

On the technical front, the NIFTY50 posted an inverted hammer candlestick pattern, indicating a reversal from the bounce-back rally that started in the previous week. On the daily charts, the index almost engulfed all the gains of three trading sessions, indicating a bearish engulfing pattern. Experts believe the index now holds crucial support of the 20 SMA level of 24,730 on the downside. While 25,000 remains the strongest resistance.

On the options data front, the initial buildup on the NIFTY50 indicates 25,000 as the crucial level with the highest open interest on both sides. Experts believe the open interest data indicate a neutral and consolidating outlook for NIFTY50.

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Long buildup: -

Short buildup: - Asian Paints, Ultratech Cement

Top traded futures contracts: HDFC Bank, ICICI Bank

Top traded options contracts: Reliance 1420 CE, Infy 1500 CE

F&O securities under ban: PGEL, RBL Bank

F&O securities out of the ban:

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