Trade setup for Dec 18: Will NIFTY50 bounce back from lower levels on Thursday?

NIFTY50

Max call OI:26,000

Max put OI:25,500

(Ten strikes to ATM, 23rd Dec expiry)

NIFTY50 closed in red for the third consecutive session amid weak global cues. The selling pressure on the Indian benchmark indices came from banking giants like HDFC Bank (-1.0%) and ICICI Bank (-1.0%), dragging the indices lower.

The global trade setup for Thursday remains weak as the key US indices closed in deep red, led by tech stocks. Tracking the overnight losses in the US markets, the Asian markets also opened in the red on Thursday morning.

On the technical charts, the NIFTY50 closed below the 20-SMA levels of 25,990, indicating increased grip of bears on the NIFTY50. On the downside, the 50-EMA level of 25,765 remains a crucial support for the index in the near term for traders to watch out for.

On the options data front, the 26,000 calls witnessed heavy open interest addition, indicating a strong resistance for the NIFTY50 on Thursday. Similarly, 25,500 continued to hold the highest open interest, indicating a strong support for the current expiry.

Stock Scanner Long buildup: - Shriram Finance

Short buildup: - Max Healthcare

Top traded futures contracts: Vedl, SBI

Top traded options contracts: HSDC Bank 1000 CE, SBI 1000 CE

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

F&O securities out of the ban:

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