Trade Setup for July 30: Will NIFTY50 close above 25,000? Here’s what options data and charts indicate

Asian markets @8 am

• GIFT NIFTY: 24,815 (-0.10%)
• Nikkei 225: 40,663 (-0.03%)
• Hang Seng: 25,346 (-0.70%)

U.S. market update

• Dow Jones: 44,632.99 (-0.46%)
• S&P 500: 6,370.86 (-0.30%)
• Nasdaq Composite: 21,098.29 (-0.38%)

NIFTY50

• Max call OI: 25,000
• Max put OI: 24,800
• (Ten strikes to ATM, 31 July expiry)

The index bounced back on Tuesday in the closing market hours as index heavyweights like Reliance lifted the markets up. As of now, the index continues to trade with a bearish outlook unless the index closes above the 25,000 level on a weekly basis. Experts believe, for the index to hold today’s bounce, it needs to close above today’s low on Wednesday, forming a higher low formation.

On the technical charts, the index formed a bullish engulfing candlestick pattern, indicating a bullish reversal. However, experts believe that for the index to form a proper bullish reversal, it needs to close above 25,000.

On the options data front, 25,000 calls hold the highest open interest, indicating a strong resistance for the coming weekly expiry. Similarly, on the downside, the 24,800 puts hold the highest open interest on the downside, indicating strong support. 

Stock Scanner

• Long buildup: L&T, Reliance
• Short buildup: -
• Top traded futures contracts: HDFC Bank, Axis Bank
• Top traded options contracts: Reliance 1420 CE, HDFC Bank 2020 CE, SBIN 800 CE
• F&O securities under ban: RBL Bank
• F&O securities out of the ban: -

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