Trade setup for June 23: Will NIFTY50 hold 25,000 support on Monday? here's all you need to know

NIFTY50

Max call OI:

Max put OI:

(Ten strikes to ATM, 26 June expiry)

NIFTY50 posted a sharp recovery on Friday, engulfing all the losses made in the first four trading sessions. The index also closed above the psychological key level of 25,000 and at the highest level in 9 months. Experts believe the index could have continued the rally led by strong buying by the FIIs further. However, geopolitical risks are escalating further, with the US bombing Iran may lead to some fresh selling at higher levels again.

On the technical charts, the index hovered around the 21 EMA levels for four consecutive sessions without closing below it meaningfully in the period. Friday’s closing above 25,000 after taking support of the 21 EMA indicates robust strength in the index. Going forward, the 21 EMA level will remain crucial support for the index, below which we can expect to see further downside. On the options front, the 25,500 calls witnessed strong open interest addition and held the highest open interest for the 26 June expiry. On the other hand, the 25,000 puts hold the highest open interest, indicating strong support for the coming expiry.

SENSEX

Max call OI:

Max put OI:

(Ten strikes to ATM, 24 June expiry)

SENSEX gained nearly 1,289 points for the week after breaking out of the consolidation. The index closed at 82,200 levels, indicating strong bullish momentum in the index. Experts remained bullish for the index for the coming week after a strong rally. However, the weekend developments on the geopolitical fronts cast a shadow over the bullish momentum. Experts remain certain about the gap-down opening on Monday morning. However, the closing remains crucial to know the next directional move in the index. On technical charts, similar to NIFTY50, the SENSEX also took support of 21 EMA after hovering around those levels. Experts believe, closing above 82,000 remains crucial for the index to continue the bullish momentum.

On the options front, the 83,000 calls hold the highest open interest for 24 June expiry, indicating strong resistance at these levels. Similarly, on the downside, the 82,000 puts hold the highest open interest, indicating strong support for the current expiry.

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Top traded futures contracts: Trent, BEL, Reliance

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