Trade setup for May 19: Will NIFTY50 continue its bullish momentum this week? Here's all you need to know

Asian markets

Asian markets traded in red on Monday morning global market cues remain mixed for coming week. The US rating agency , Moody’s downgraded the US’ credit rating to AA1 from AAA on Friday. The Japan’s Nikkei, Hong Kong’s Hang Seng and Korean Kospi all traded in red with 0.4% losses on Monday morning.

US markets

The US markets closed the week with nearly 3% gains on softening inflation and easing trade war tensions. However, the ratings downgrade by Moody’s for the first time in the history soured the investor sentiment on Monday morning. The US stock market futures for NASDAQ traded 0.5% lower on Monday morning on the negative development.The rating agency pointed to mounting entitlement spending, rising interest costs, and persistent political gridlock as key threats to debt sustainability.

NIFTY50

Max call OI: 25,500

Max put OI: 25,000

(Ten strikes to expiry, 22nd May expiry)

NIFTY50 closed the week in green with strong gains of more than +4.21% and comfortably closing above the previous swing high levels of 25,000. The index shrugged off the previous week’s losses on account of strong FII buying and softening inflation numbers, which boosted the investor sentiment.

On technical charts, NIFTY50 continues to hold a bullish stance, with a bias toward touching the previous record high of 26,200. Experts believe, index could continue its positive momentum to hit the previous record high levels. On the options data front, the benchmark index monthly expiry indicates the support and resistance range of 25,000 to 25,500. The 25,000 puts hold the highest open interest, and the 25,500 calls hold the highest open interest on the upside.

SENSEX

Max call OI:83,000

Max put OI:82,000

(Ten strikes to the ATM, 20th May Expiry)

SENSEX jumped 2,876 points or 3.62% to 82,330.59 during the week ended May 16, 2025. The gains were largely aided by positive domestic cues and strong earnings growth across a broader set of companies. The FIIs led the rally throughout the week with relentless buying of Indian equities worth approximately ₹16,000 crore. On technical charts, SENSEX closed above the previous swing high level of 82,200, indicating the next resistance of the previous record high level of 85,978. Experts belive the positive momentum to continue until it touches the previous record high levels.

On the options front, the 83,000 calls hold the highest open interest, and on the flipside, the 82,000 puts hold the highest open interest. The strong open interest addition at was seen at 82,300 levels, indicating some volatility around these levels.

Stock scanner

Long buildup: BEL

Short buildup: Bharti Airtel

Top traded futures contracts: Bharti Airtel, HAL, BEL

Top traded options contracts: HAL 5000 CE, HAL 5100 CE

Under F&O ban:Hind Copper, Manappuram, Titagarh

Out of F&O ban: CDSL

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 recommendatory. The stock names mentioned in this article are purely for showing how to do analysis. Take your own decision before investing.