Trade setup for March 5: GIFT NIFTY indicates a gap-up opening, can it sustain? Check details

NIFTY50

Max call OI:24,000

Max put OI:25,000

(Ten strikes to ATM, 10 March expiry)

The NIFTY50 closed in red for the third consecutive session, falling over 4% in merely three sessions. The foreign institutional investors continued to remain net sellers in the Indian equities market as they sold equities worth ₹8,752 crore on Wednesday. The index closed below crucial support levels, further signalling weakness. However, the global market cues for Thursday morning remain positive with US markets closing in green, Asian markets bouncing back and cooling off oil prices.

On the technical front, the NIFTY50 closed below the crucial support zone of 24,571 to 24,600 which was also a budget-day-low support level. A follow-up closing on Thursday at the current levels would signal further weakness in the index.

On the options data front, the 25,000 calls hold the highest open interest, indicating near term resistance at these levels. On the flipside, the 24,000 calls hold the highest open interest, indicating the near term support for the index. The wide range between 24,000 to 25,000 indicates strong near term volatility in the index.

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Long buildup: -Coal India

Short buildup: Tata Steel, Tata Motors PV

Top traded futures contracts: HDFC Bank

Top traded options contracts: Infy 1420 CE

F&O securities under ban: SAMMANCAP

F&O securities out of the ban: