Trade setup for March 20: Can NIFTY50 hold the 23,000 support on Friday?

NIFTY50

Max call OI:24,000

Max put OI:23,000

(Ten strikes to ATM, 24 March Expiry)

The NIFTY50 witnessed one of the sharpest falls since the Covid-19 crash as the index fell over 770 points on Thursday. The weak global and domestic cues gripped the investor sentiment, leading to rising selling pressure. However, the index managed to hold the crucial 23,000 level on a closing basis, adding some hope for bulls.

For the index to claw back above 23,500, a weekly closing above 23,000 could provide much-needed relief from the sell-off pain. However, a closing below the 23,000, could open the gates for 22,000 levels, which is also the weekly 200 EMA.

The crude oil prices witnessed a sharp fall from the intraday top level of $119 per barrel to close near $107 per barrel on Thursday. The fall was driven by positive commentary from President Trump and the Israeli Prime Minister on ending the conflict sooner rather than later.

On the options data front, the 23,000 puts hold the highest open interest level, indicating a strong and crucial support level for the NIFTY50. Similarly, the 24,000 calls hold the highest open interest, indicating a long-term resistance for the index.

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Long buildup: ONGC

Short buildup: Shriram Finance, Eternal

Top traded futures contracts: HDFC Bank

Top traded options contracts: HDFC Bank 820 CE

F&O securities under ban: SAIL, Samaan Capital

F&O securities out of the ban: NA

Source: Upstox and NSE.