Trade setup for June 16: Will NIFTY50 bounce back from current levels? here's all you need to know

NIFTY50

Max call OI:25,000

Max put OI:24,500

(Ten strikes to ATM, 19th June expiry)

NIFTY50 closed the previous week at a 1.4% loss after facing resistance at 25,200 levels. Moreover, the index also closed below the key swing support level of 25,000, indicating a bearish outlook for the coming week.

On technical charts, the index closed below the crucial support level of 21 EMA at 24,778, changing the outlook from slightly bullish to bearish. In the extreme volatility scenario, the 200 EMA level of 23,934 should be a key level to watch out for in the coming week. On the options front, the 19th June expiry indicates resistance at 25,000, with the highest interest on the call side. On the downside, the 24,500 puts hold the highest open interest, indicating support for the current weekly expiry.

SENSEX

Max call OI:82,000

Max put OI:81,000

(Ten strikes to ATM, 17th June expiry)

SENSEX closed 1030 points or 1.3% lower in the previous week, owing to weak global market cues and strong resistance at the higher levels of 82,500. The index has failed to break the 82,500 resistance level for the fifth consecutive week. Experts believe, selling pressure at higher levels remains a key hurdle for the index’s rally towards record high levels.

On the technical level, the index has closed below the 21 EMA levels of 81,468. However, traders see 50 EMA as the next crucial support for the current week and in the near term 200 EMA level of 78,500. On the options data front, 82,000 calls hold the highest open interest for the 17th June expiry, indicating a crucial resistance at these levels. On the downside, the 81,000 puts hold the highest open interest, indicating nearest support for the index.

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Long buildup:

Short buildup: Adani Ports, ITC

Top traded futures contracts: HDFC Bank, Reliance, Indigo

Top traded options contracts: SBI 820 CE, Reliance 1460 CE

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