Trade setup for Feb 04: Can NIFTY50 hold the 20 EMA level on Wednesday? Check details

NIFTY50

Max call OI:26,000

Max put OI:25,500

(Ten strikes to ATM, 10 Feb expiry)

The NIFTY50 in a historic feat opened over 1000 points higher on Tuesday, following the lowering of tariffs on India by the US. The NIFTY50 closed over 600 points higher on Tuesday after giving up the initial gains. The sharp rally in the NIFTY50 remained broad-based with all the major sectoral indices closing in green. The trade setup for Wednesday remains positive with a buoyant outlook for the day, with NIFTY50 closing above 25,600 levels

On the technical front, the NIFTY50 closed above crucial 20,50 and 200 EMA levels on Tuesday, indicating a strong bullish reversal. However, the index faced selling pressure at 26,300 levels, indicating strong resistance in the near term.

On the options data front, the initial open interest buildup for 10 Feb expiry suggests that 26,000 calls hold the highest open interest, indicating a strong resistance. On the downside, the 25,500 puts hold the highest open interest, indicating a near-term support.

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Long buildup: Adani Ports

Short buildup:

Top traded futures contracts: ICICI Bank, Reliance

Top traded options contracts: Reliance 1500 CE

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