Trade setup for Feb 9: Will NIFTY50 hold the opening gains on Monday?

NIFTY50

Max call OI:

Max put OI:

(Ten strikes to the ATM, 11 Feb expiry)

The NIFTY50 closed the previous week with 1.4% gains as the trade deal with the US bolstered the economic prospects of exports to one of the biggest markets in the world. The tariff rates were reduced from 55% to 18% for major categories and to zero for a few. The gems and jewellery stocks will remain in focus on Monday, as the category now attracts zero tariffs on US exports.

The GIFT NIFTY futures traded over 200 points higher on Monday morning, indicating a sharp gap-up opening.

On the technical front, the NIFTY50 closed above 20 EMA levels of 25,650 levels for the past full week, indicating a strong buyer sentiment at the lower levels after a sharp gain on Tuesday. The 50 EMA trend line is also showing upward-moving momentum, indicating renewed buyer confidence in the index.

On the options data front, the 25,500 puts hold the highest open interest, indicating a strong support for the coming weekly expiry on 11th February. On the other hand, the 26,000 calls hold the highest open interest, indicating a strong resistance level for NIFTY50.

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Top traded options contracts: Infy 1600 CE

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