Trade setup for June 24: NIFTY50 holds support of 21 EMA, outlook remains neutral; here's all you need to know

NIFTY50

Max call OI: 25,000

Max put OI: 25,000

(Ten strikes to ATM, 26 June expiry)

NIFTY50 erased partial gains of Friday on Monday to close below 25,000. The bullish outlook was negated after geopolitical risks clouded the investor sentiments. However, the outlook for NIFTY50 remains neutral as it closed above Monday’s low, indicating some buying strength at lower levels.

On technical charts, the index continues to hold support at the 21 EMA level of 24,840, indicating the neutral-to-bullish outlook remains intact for the index. The index also formed an inside bar candlestick pattern, which indicates a neutral stance of the index.

On the options data, the 25,000 calls and puts hold the highest open interest, indicating indecisiveness by the options trader on the direction of the index. However, the 25,000 calls witnessed strong open interest addition, indicating resistance for the current expiry.

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Long buildup:

Short buildup: Infy

Top traded futures contracts: HDFC Bank, Reliance, Infy

Top traded options contracts: SBI 800 CE, Reliance 1,470 CE

F&O securities under ban: ABFRL, BIOCON, RBLBANK, TITAGARH

F&O securities out of ban: CDSL, HUDCO, MANAPPURAM,

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