Trade setup for July 29: Will NIFTY50 hold the support of 24,500 on Tuesday?

NIFTY50

Max call OI:25,000

Max put OI:24,500

(Ten strikes to ATM, 31 July expiry)

The index continued its slide on Monday, starting the week on a negative note. The index continued to face selling pressure led by sharp declines in financial services, IT stocks like Bajaj Finance, TCS, Infy and others. The overall pessimism surrounding Q1 earnings, along with the absence of fresh cues on the India-US trade deal, led to increased selling pressure by the FIIs.

On the technical front, the index now eyes the crucial swing support zone of 24,150 to 24,400. In addition, experts believe that the index could find support of the 200 EMA on a medium-term basis. Experts believe the upside now remains capped at 25,000, and the support at 24,500 levels.

On the options data front, the 25,000 calls hold the highest open interest, indicating a strong resistance level, and 24,500 puts hold the highest open interest on the downside, indicating a crucial support.

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Long buildup: Shriram Finance

Short buildup: Bajaj Finance, Bharti Airtel

Top traded futures contracts: HDFC Bank, ICICI Bank

Top traded options contracts: Reliance 1400 CE, HDFC Bank 2020 CE, SBIN 800 PE

F&O securities under ban: RBL Bank

F&O securities out of the ban: IEX

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