return to news
  1. Trade setup for May 16: 25,000 resistance broken, what lies ahead for NIFTY50? Here's what charts and options data reveal

Market News

Trade setup for May 16: 25,000 resistance broken, what lies ahead for NIFTY50? Here's what charts and options data reveal

Upstox

4 min read | Updated on May 16, 2025, 07:26 IST

Twitter Page
Linkedin Page
Whatsapp Page

SUMMARY

NIFTY50 and SENSEX are roughly 4.5% away from the record high levels touched in October 2024. The current trade setup continues to remain bullish with strong buying in all the index stocks. Options data for the weekly expiry indicates 25,500 as key resistance level for NIFTY50.

The GIFT NIFTY futures suggest that the NIFTY50 index will open 7 points higher.

The GIFT NIFTY futures suggest that the NIFTY50 index will open positive on Friday. | Image: Shutterstock

GIFT NIFTY indicates a 90 points gap up opening on Friday morning for Indian markets as the NIFTY50 and SENSEX close above the crucial resistance line on Thursday. The 1.5% rally on Thursday was led by robust buying by the FIIs as they bought equities worth ₹5,300 crore on Thursday.

Open FREE Demat Account within minutes!
Join now

Asian markets

The Asian markets traded red on Friday morning after the Japanese economy shrank by 0.2% in the previous quarter. Following the weak economic numbers, the Japanese Nikkei index fell over 200 points, followed by Hong Kong and Chinese indices, which fell nearly 0.5% on Friday morning.

US markets

The US markets closed mixed on Thursday as Dow Jones and S&P 500 closed in green, except for NASDAQ, as tech stocks witnessed selling pressure at higher levels. Softer than expected inflation print and easing trade war tensions continues to remain the key triggers for the US markets.

NIFTY50

Max call OI: 25,500

Max put OI: 25,000

(Ten strikes to ATM, 22 May expiry)

NIFTY50 witnessed a sharp upswing in the afternoon session on Thursday, closing nearly 400 points higher. The index closed at a six-month high level above the crucial 25,000 mark. The index closed above the crucial resistance level of 25,000, indicating renewed momentum in the index.

On technical charts, NIFTY50 closed above the upper Bollinger band levels of 25,005 mark. Experts believe the index is poised to rally towards its previous high. Nifty-50_2025-05-15_23-01-45.webp On weekly charts, too, the index is on the verge of forming a strong bullish candle, indicating sustained bullish momentum in the benchmark index. The strong FII buying and positive domestic cues continue to augur well for Indian markets. Nifty-50_2025-05-15_23-19-22.webp On the options data front, the 22nd May expiry data shows a new resistance level of 25,500 due to the highest open interest on the call side. Similarly, 25,000 puts hold the highest open interest, indicating support for the coming expiry. nifty16may.webp

SENSEX

Max call OI:82,500

Max put OI:82,500

(Ten strikes to ATM, 20th May expiry)

SENSEX closed over 1200 points higher on Thursday on strong buying in the IT, Auto and metals indices. All the stocks from the index closed in green, except for IndusInd Bank, which closed marginally negative. Meanwhile, Tata Motors and SBI were the top gainers. SENSEX_2025-05-15_23-02-10.webp On technical charts, similar to NIFTY50, SENSEX closed near the upper Bollinger band range of 82,624. Experts believe the rally indicates strength with bigger positions at higher levels. SENSEX_2025-05-15_23-20-55.webp On weekly charts, the Index has comfortably closed above the resistance level of 82,200, indicating a stance for bullish momentum. The index currently trades 4.2% away from the record high level of 85,978.

Stock scanner

Long buildup: Hero MotoCorp, JSW Steel, Trent

Short buildup:

Top traded futures contracts: HDFC Bank, ICICI Bank, Reliance

Top traded options contracts: Reliance 1500 CE, Reliance 1,420 CE

Under F&O ban: CDSL,Manappuram

Out of F&O ban:

To access a specially curated smartlist of the most traded and active stocks, as well as the OI gainers and losers, simply log in: https://pro.upstox.com/ ➡️F&O➡️Options smartlist/Futures smartlist In Futures and Options or F&O, long build-up means an increase in Open Interest (OI) along with a price increase, and short build-up means an increase in Open Interest(OI) along with a price decrease. Source: Upstox and NSE.
Disclaimer: Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop-losses. The information is only for consumption by the client, and such material should not be redistributed. We do not recommend any particular stock, securities and strategies for trading. The securities quoted are exemplary and are not recommended. The stock names mentioned in this article are purely for showing how to do analysis. Take your own decision before investing.
SIP
Consistency beats timing.
promotion image

About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

Next Story