Trade setup for Dec 8: Will NIFTY50 hold the gains above 26,000 on Monday?

NIFTY50

Max call OI:26,500

Max put OI:26,000

(Ten strikes to ATM, 09 Dec expiry)

NIFTY50 closed the previous week with minor gains as RBI’s dovish rate-cut stance cheered the markets. The global market cues remained resilient ahead of the Federal Reserve’s policy decision this week. Additionally, investors also kept an eye on the Japanese bond market development as the 10-year G-sec yields touched to record high levels.

On the technical front, the NIFTY50 continued to hold the support of the 20 SMA levels and bounced back. Experts believe, the 20-SMA level of 25,994 will continue to remain crucial support for the coming days and a resistance of 26,240.

On the options data front, the 26,000 puts held the highest open interest, indicating a strong support for tomorrow’s expiry, while 26,500 held the highest open interest on the upside, indicating a strong resistance for the current expiry.

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Long buildup: -

Short buildup: -

Top traded futures contracts: Indigo, Kaynes

Top traded options contracts: SBI 1000 CE, SBI 950 PE

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