Trade setup for July 22: Will NIFTY50 bounce back from current levels? Check details

NIFTY50

Max call OI:25,100

Max put OI:25,000

(Ten strikes to the ATM, 24 July expiry)

NIFTY50 recovered from lower levels on Monday, led by heavy buying in banking stocks like HDFC Bank and ICICI Bank. The index continued to trade in a narrow consolidation zone of 25,000 to 25,100. Experts believe the index could continue its recovery on Tuesday as well, led by positive global cues.

On the technical charts, the index formed an inside bar candlestick pattern, indicating indecision about the future outlook of the index. However, the index continued to hold the support of the 50 EMA levels of 24,938. Experts believe that the index to rally it should cross 21 EMA levels on a weekly closing basis.

On the options data front, the 25,100 calls witnessed heavy open interest addition and held the highest open interest, indicating near-term resistance for the expiry. Similarly, on the downside, 25,000 puts hold the highest interest, indicating strong support for the expiry.

Stock Scanner

Long buildup: Eternal

Short buildup: Reliance, Wipro

Top traded futures contracts: HDFC Bank, Reliance, ICICI Bank, Eternal

Top traded options contracts: Reliance 1480 CE, Reliance 1460 CE

F&O securities under ban: Bandhan Bank, RBL Bank

F&O securities out of the ban:

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