Trade setup for Feb 2: GIFT NIFTY suggests a positive start on Monday, will it sustain?

NIFTY50

Max call OI:25,000

Max put OI:24,500

(Ten strikes to ATM, 03 Feb expiry)

The NIFTY50 witnessed a sharp correction in the special budget session after the budget announcement failed to excite investor optimism, and the hike in STT on the F&O segment further soured the investor sentiment. The NIFTY50 closed below the 25,000 psychological mark, adding a bearish tone to the setup.

The GIFT NIFTY futures suggest a positive start for the index on Monday morning after a brutal selloff on Sunday.

On the technical charts, the NIFTY50 closed below the 200 EMA level of 25,150, indicating a bearish setup for the index on Monday. The index faced resistance at the 24,500 levels on Sunday in a highly volatile trade. The index moved nearly 1000 points from the intraday low levels.

On the option data front, the NIFTY50 witnessed heavy liquidation of open interest at the 25,000 on the put side and witnessed open interest addition on the call side, indicating a new resistance level for tomorrow’s expiry. On the downside, 24,500 puts held the highest open interest, indicating a near-term resistance for today.

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Top traded futures contracts: MCX, BSE

Top traded options contracts: HDFC Bank 950 CE

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