Trade setup for March 19: Can NIFTY50 bounce back after sharp gap down on Thursday? Check details

NIFTY50

Max call OI:24,500

Max put OI:23,500

(Ten strikes to ATM, 24 March expiry)

GIFT NIFTY futures indicate a weak and sharp gap-down opening for NIFTY50 on Thursday. The hawkish outlook by the Federal Reserve, management changes at the HDFC Bank and high crude oil prices are likely to influence today’s market sentiment. The NIFTY50 managed to close in green for the third consecutive session on Wednesday amid strong buying at the lower levels.

The NIFTY50 index continued the winning streak for the third consecutive session as it closed slightly below the crucial resistance level of 23,800. The index closed above the 20 and 50 EMAs for the first time in 15 trading sessions, signalling the reversal of trend from bearish to neutral.

In addition to the strong upmove in the index, the sharp fall in the India VIX below 20 marked a fall in the intraday volatility.

The hourly charts also indicate that the index may consolidate around the current levels before deciding on the direction for the next move. The near-term support level stands at 23,000, and the resistance level is at 23,890.

On the options data front, the 23,500 put option holds the highest open interest, indicating a near-term resistance for the index. On the flipside, the 24,500 calls hold the highest open interest, indicating a strong resistance for the index.

Stock Scanner Long buildup: Eternal, Tech Mahindra, M&M

Short buildup:

Top traded futures contracts: MCX, HDFC Bank

Top traded options contracts: Infosys 1300 CE

F&O securities under ban: SAIL, Samaan Capital

F&O securities out of the ban: NA

Source: Upstox and NSE.