Trade setup for Dec 3: Will NIFTY50 hold the support at 20 SMA levels on Wednesday?

NIFTY50

Max call OI:26,200

Max put OI:26,000

(Ten strikes to ATM, 09 Dec expiry)

After a volatile expiry session, the NIFTY50 is expected to open flat on Wednesday morning as indicated by GIFT NIFTY. The NIFTY50 failed to close at record high levels for the fourth consecutive session due to a lack of fresh buying at higher levels. Investors turned their focus towards the RBI policy outcome, as lower inflation and positive GDP numbers raised the expectations for a rate cut.

On the technical front, the NIFTY50 showed consolidation signs amid selling pressure at higher levels. However, the index also continued to find support at the 20-SMA levels, holding the bullish stance. Experts believe a weekly closing above new record high levels could further boost the investor sentiment.

On the options data front, the initial buildup for 09 December expiry indicates a strong resistance at 26,200 levels as the strike price held the highest open interest on the call side. On the other hand, the 26,000 puts held the highest open interest, indicating strong support on the downside.

Stock Scanner

Long buildup: -Asian Paint

Short buildup: -Indigo

Top traded futures contracts: HDFC Bank, ICICI Bank

Top traded options contracts: MCX, Adani Enterprises

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