Trade setup for Dec 15: 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, 16 Dec expiry)

NIFTY50 bounced back from lower levels on Friday and recouped the majority of the losses of the week in two trading sessions, closing above the psychological benchmark of 26,000. The global market cues remained buoyant following the Federal Reserve's interest rate cut. The US markets closed in the deep red on Friday after AI’s overvalued trade concerned investors.

The Nasdaq index closed nearly 2% lower, followed by the S&P 500 at 1% and the Dow Jones at 0.5%. Following the weak global cues, the GIFT NIFTY futures traded 82 points lower, indicating a gap-down opening for Indian markets on Monday morning.

On the technical charts, the NIFTY50 is broadly showing signs of consolidation and indecision. The index bounced back from 50-EMA levels in the previous week and closed above the 20-EMA levels on Friday. However, experts believe a weekly closing above the 26,200 levels could spur further momentum towards a new record high level for the index.

On the options data front, the 26,500 calls hold the highest open interest, indicating a strong resistance for tomorrow’s expiry. On the other hand, the 26,000 puts hold the highest open interest, indicating strong support.

Stock Scanner

Long buildup: - Hindalco

Short buildup: - Hindustan Unilever

Top traded futures contracts: Hindustan Zinc, Idea

Top traded options contracts: Reliance 1600 CE,

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

F&O securities out of the ban: Kaynes Technologies

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