Trade setup for March 11: Can NIFTY50 sustain the up move on Wednesday or will it consolidate?

NIFTY50

Max call OI:24,500

Max put OI:24,000

(Ten strikes to ATM, 17 March expiry)

The NIFTY50 bounced back on Tuesday, recovering partial losses of the previous day swiftly. The intraday trade remained volatile, but the last hour of buying lifted the index above the 24,200 levels. The morning cues for Wednesday remain mixed as the US markets closed in red in a choppy session, while Asian markets are rejoicing with sharp pullback in the crude oil prices. The WTI crude oil fell below $85 per barrel on Wednesday morning after IEA proposed to release record reserves exceeding 182 million barrels.

On the hourly charts, the NIFTY50 has closed above the hourly 20 EMA for the first time since February 26. The index has lost nearly 5% during the same period. As highlighted yesterday, the index is showing signs of stabilising after entering into oversold territory. If the positive cues remain consistent, the index may try to touch the 50 EMA level of 24,548 in the coming sessions.

On the options data front, the initial buildup for 17 March expiry indicates a broad trading range of 24,000 to 24,500. The 24,000 puts hold the highest open interest, indicating a strong support on the downside. Similarly, the 24,500 calls hold the highest open interest, indicating a strong resistance on the upside.

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Long buildup: Shriram Finance

Short buildup:

Top traded futures contracts: Reliance

Top traded options contracts: Infosys 1400 CE

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