Trade setup for March 16: GIFT NIFTY futures indicate positive opening for NIFTY50, can it sustain?

NIFTY50

Max call OI:23,500

Max put OI:23,000

(Ten strikes to ATM, 17 March expiry)

The GIFT NIFTY futures surged 160 points on Monday morning, indicating a positive opening for the NIFTY. The US stock market futures jumped over 0.3% on Monday morning, after reports said that President Trump wants China to negotiate with Iran on the Strait of Hormuz situation. Consequently, the pressure on oil prices eased as they corrected from the intraday high levels.

The hourly charts signal extreme pessimism with no respite of bounce back towards the 20 and 50 EMA levels. Furthermore, the hourly RSI level of 22 and ADX level of 43 indicate a strong bearish trend.

Looking at the bigger picture, the weekly charts of the NIFTY50 indicate a strong breakdown on the long-term charts. In the event of further correction, the long-term support remains at the weekly 200 EMA level of 21,900-22,000, which was previously breached during the 2020 COVID-19 crash.

On the options data front, the 23,500 calls hold the highest open interest, indicating a near-term resistance for the index. On the other hand, the 23,000 puts held the highest open interest with 71 lakh contracts, indicating a near-term support for the NIFTY50 for tomorrow’s expiry.

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Long buildup: Tata Consumer

Short buildup: L&T, Hindalco, Tata Steel

Top traded futures contracts: HDFC Bank

Top traded options contracts: Reliance 1440 CE

F&O securities under ban:

F&O securities out of the ban:

Source: Upstox and NSE.