Trade setup for March 25: GIFT NIFTY indicates a positive start, will it sustain?

NIFTY50

Max call OI:24,000

Max put OI:22,500

(Ten strikes to ATM, 30 March expiry)

GIFT NIFTY futures jumped over 200 points on Wednesday morning after media reports suggested that the US is preparing for a month-long ceasefire with Iran.

The US markets closed in the red on Tuesday after attacks near Iran’s energy infrastructure soured investor sentiment. However, the post-market positive news flow has lifted the US stock futures higher on Wednesday morning, suggesting a strong opening overnight.

On the hourly charts, the index maintained gains above the 20 EMA at 22,892, signalling sustained buying from lower levels. The momentum could remain intact if the index manages to close above the 20 EMA levels for the second consecutive session.

The index also formed a Doji candlestick pattern on the daily charts, suggesting indecision on the direction of the index. If positive global cues persist throughout the day, the index could close above 23,000, giving it a much-needed boost.

On the option data front, the 24,000 CE of 30th March expiry suggests the highest open interest, indicating a strong resistance on the upside for the coming monthly expiry. On the flipside, 23,000 PE holds the highest open interest, indicating a downside protection near these levels.

Stock Scanner

Long buildup: LT

Short buildup: NA

Top traded futures contracts: HDFC Bank

Top traded options contracts: Reliance 1,420 CE

F&O securities under ban: SAIL, Samaan Capital

F&O securities out of the ban: NA