Trade setup for March 12: NIFTY50 rebounds from 22,300 support, eyes resistance at 21 EMA

Asian markets @ 7 am

• GIFT NIFTY: 22,553 (-0.03%)
• Nikkei 225: 36,874 (+0.22%)
• Hang Seng: 23,859 (+0.32%)

NIFTY50

• Max call OI: 23,000
• Max put OI: 22,200
• (10 Strikes from ATM, Expiry: March 13)

Amid weak global cues, the NIFTY50 index started the Tuesday’s session on a negative note. The index took support around the immediate support zone of 22,300 and recovered all its losses, forming a bullish candle on the daily chart.

The technical structure of the index remains range-bound as per the day chart. The index is currently oscillating between its 21-day exponential moving average (EMA) and the crucial support zone of 22,200. A decicisve break of this range on closing basis will provide clear directional clues.

The open interest (OI) data for the March 13th expiry saw significant put OI base at 22,200 and 22,000 strikes. This indicates that index has support around these levels. On the flip side, the call base was observed at 22,700 and 22,900 strikes, indicating resistance for the index around these levels.

SENSEX

• Max call OI: 75,000
• Max put OI: 74,000
• (10 Strikes from ATM, Expiry: 18 March)

The SENSEX also started the Tuesday’s session with a gap-down opening and rebounded from the crucial support zone of 73,600 zone. The index formed a bullish candle on the daily chart, indicating support based buying.

As highlighted on the chart below, the index is currently consolidating between the range of 75,600 and 72,500. Additionally, if the index reclaims its 21-day exponential moving average (EMA), it can extend its gains up to 75,600 zone. On the other hand, a close below the crucial support zone of 72,500 will signal weakness.

FII-DII activity

Stock scanner

• Long build-up: Tata Communications, One 97 Communications (Paytm), Phoenix Mills, Max Financial Services and REC
• Short build-up: IndusInd Bank, Zomato, Bandhan Bank, Ashok Leyland and AU Small Finance Bank
• Top traded futures contracts: IndusInd Bank, ICICI Bank, HDFC Bank, Infosys and Reliance Industries
• Top traded options contracts: IndusInd Bank 750 PE, Trent 5000 CE, Dixon 13000 PE, Reliance 1240 CE and TCS 3600 CE
• Under F&O ban: BSE, Hindustan Copper, IndusInd Bank, Manappuram Finance and Steel Authority of India

In Futures and Options or F&O, long build-up means an increase in Open Interest (OI) along with an increase in price, and short build-up means an increase in Open Interest(OI) along with a decrease in price. Source: Upstox and NSE.

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