Trade setup for Jan 23: Will NIFTY50 hold the gains above 25,300 on Friday?

NIFTY50

Max call OI:25,500

Max put OI:25,000

(Ten strikes to ATM, 27 Jan expiry)

The NIFTY50 bounced back sharply on Thursday after global markets rebounded across the globe. Further, President Trump’s comment on the India-US trade deal also boosted the investor sentiment. The GIFT NIFTY futures traded 20 points lower on Friday morning, indicating a flat opening for NIFTY50.

On the technical charts level, the NIFTY50 index continued to trade above the 200 EMA level, indicating that the 25,000 level remains a strong support in the near term. Further, the index also bounced back from the weekly 50 EMA levels, making it the near-term support level on a weekly basis.

On the options data front, the 25,000 puts hold the highest open interest, indicating a strong support for the coming monthly expiry. Similarly, the 25,500 calls hold the highest open interest, indicating strong resistance for the index in the coming monthly expiry on January 27th.

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Long buildup: - BEL, Adani Ports, Tata Steel, Shriram Finance, Bajaj Auto

Short buildup: Eternal

Top traded futures contracts: ICICI Bank, HDFC Bank

Top traded options contracts: HDFC Bank 920 CE, SBIN 1010 CE

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