Trade setup for Feb 23: Can NIFTY50 hold the morning gains on Monday? Check details

NIFTY50

Max call OI:26,000

Max put OI:25,500

(Ten strikes to ATM, 24 Feb expiry)

The NIFTY50 bounced back from the lower levels on Friday after plunging to week-low levels. The index managed to negate the bearish engulfing pattern formed on Thursday as the NIFTY50 closed above the 25,500 levels. The sentiments for Monday morning remain buoyant with the US tariffs ratified by the US Supreme Court as illegal. The GIFT NIFTY futures indicate a sharp gap-up opening for Indian markets on Monday morning.

NIFTY50 chart check

On the technical charts, as highlighted earlier, the NIFTY50 negated the bearish engulfing pattern by closing above the previous week’s low level on the daily charts. On the hourly charts, the NIFTY50 failed to close above the 20 and 50 EMA levels on Friday, indicating a strong resistance at higher levels. With today’s gap-up opening, experts believe the index should hold above 25,700 levels to continue the momentum towards 26,000 this week.

OI analysis

On the options data front, the 26,000 calls hold the highest open interest, indicating a strong resistance for tomorrow’s expiry. Similarly, the 25,600, 25,700 and 25,800 calls witnessed heavy unwinding of open interest, indicating the absence of barriers at these levels on Monday morning. Similarly, on the flipside, the 25,800 puts witnessed heavy open interest addition and held the highest open interest, indicating a strong support for the NIFTY50.

Stock Scanner

Long buildup: -L&T, NTPC

Short buildup:

Top traded futures contracts: HDFC Bank

Top traded options contracts: Infy 1430 CE

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