Trade setup for Jan 07: Will NIFTY50 hold the 26,000 support on Wednesday?

NIFTY50

Max call OI:26,500

Max put OI:25,700

(Ten strikes to ATM, 13 Jan expiry)

The global market cues remain buoyant ahead of Wednesday’s trading session for Indian markets. However, fresh threats of additional tariffs by the US President continued to sour investor sentiment. The NIFTY50 closed in red for the second consecutive session on Tuesday. On the contrary, the US markets closed at record high levels as the Dow Jones and the S&P500 index advanced by almost 1% on Tuesday.

The Indian markets are bracing for a weak start to the trading session on Wednesday as GIFT NIFTY futures indicate a 70-point gap down opening.

On the technical front, the NIFTY50 failed to bounce back above the 26,200 levels and closed in red. The 26,300 continues to remain a crucial resistance for the NIFTY50 in the near term, while 26,000 remains a crucial support.

On the options data front, the initial buildup for 13th January expiry indicates 26,500 as crucial resistance with the highest open interest. While the 25,700 puts hold the highest open interest on the downside, indicating a strong support for the coming weekly expiry.

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Long buildup: -

Short buildup: Trent, Reliance, Kotak Bank

Top traded futures contracts: Reliance, ICICI Bank

Top traded options contracts: Reliance 1570 CE, SBIN 1050 CE

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