Trade setup for Jan 16: Will NIFTY50 close in green on Friday on weekly basis?

NIFTY50

Max call OI:26,000

Max put OI:25,600

(Ten strikes to ATM, 20 Jan expiry)

The NIFTY50 continued to slide further on Wednesday amid continued stress on the US-India relations over the trade deal and the new tariff threats. The foreign investors continued to sell Indian equities in significant quantities. The global market cues remained positive after the US markets snapped a two-day losing streak on Thursday. The GIFT NIFTY traded 65 points higher on Friday morning, indicating a positive start for the NIFTY50 on Friday.

On the Technical front, NIFTY50 closed below the 20-EMA level of 25,947 for the fifth consecutive session, indicating the absence of buying power at the 25,700 levels. Thus, 25,700 now remains a near-term resistance, and 26,000 remains a medium-term resistance level for the NIFTY50.

On the options data front, 26,000 calls continued to hold the highest open interest, indicating strong resistance. On the other hand, 25,600 puts held the highest open interest, indicating a near-term support on the downside.

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Long buildup: - Tata Steel, NTPC, Axis Bank

Short buildup: TCS, Asian Paint

Top traded futures contracts: VEDL, ICICI Bank

Top traded options contracts: TCS 3,200 CE

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