Trade setup for Dec 12: Will NIFTY50 close above 26,000 level on Friday?

NIFTY50

Max call OI:26,000

Max put OI:25,800

(Ten strikes to ATM, 16 Dec expiry)

NIFTY50 snapped the three-day losing streak by gaining over 100 points on Thursday amid a broad-based rally in the Indian markets. The rally was partly led by optimism over the Federal Reserve’s interest rate cut and partly by buying in Metal and Auto stocks. The global market cues remain positive with key US indices hitting record highs. Owing to positive global cues, GIFT NIFTY indicates a sharp gap up opening for Indian markets on Friday morning.

On the technical charts, the NIFTY50 looks to be taking support at the 50 day exponential moving average level (EMA) of 25,735 on the daily charts. However, the upsides remains capped as long as NIFTY closes below the shor term 20-day EMA level of 25,950.

On the options data front, 26,000 calls continue to hold the highest open interest, indicating a strong resistance for the current weekly expiry. However, 25,800 puts witnessed heavy open interest addition on Thursday, indicating a new support level for the near term.

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Long buildup: -

Short buildup: -

Top traded futures contracts: Indigo, Dixon

Top traded options contracts: Reliance 1600 CE, TCS 3,300 CE

F&O securities under ban: Bandhan Bank, Samman Capital,

F&O securities out of the ban: Kaynes Technologies

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