Trade setup for May 30: Will NIFTY50 breakout of consolidation? here's all you need to know

NIFTY50

Max call OI: 25,000

Max put OI: 24,800

(Ten strikes to ATM, 5th June expiry)

It was yet another lethargic session for the NIFTY50 with a slight intraday volatility. The index opened higher but witnessed selling pressure in the first half. However, the index bounced back to close on a flat to positive note. Thereby, after two consecutive days of downbeat, the NIFTY50 index managed to close in green with marginal gains of 0.3%. NIFTY50 is witnessing cautiousness ahead of the monsoon forecasts and the release of the GDP and inflation numbers.

Considering the daily time frame, the NIFTY50 chart depicts indecisiveness and a struggle at multiple resistance zones of 25,000-25,200. The index requires a consolidation breakout on either side for any directional outcome. Experts believe 25,000 as the immediate resistance while 24,690, which is a 61.8% retracement level of the upward rally from 24,460 to 25,079, is the immediate support.

On the options data front, the 25,000 calls hold the highest open interest for the 3rd June expiry, indicating a strong resistance at these levels. On the downside, the index holds the highest open interest at 24,800 puts, indicating strong support at these levels. SENSEX

Max call OI: 81,500

Max put OI: 81,500

(Ten strikes to ATM, 3rd June expiry)

SENSEX closed on a similar note as the NIFTY50 index with a 0.4% gain from the previous close. SENSEX opened on a flat to positive note but witnessed a fall near its crucial support level of 81100 and bounced back to close to where it opened.

The last moment bounce back reveals buyers’ dominance at the end of the session. All in all, the day was dull for the SENSEX too, with slight intraday volatility. Going forward, we hold 81250-81100 as the immediate support zone for the SENSEX while we maintain our 82350, which is a trendline level as the resistance for now.

On the options front, the 81,500 level holds the highest open interest for calls and puts, indicating a narrow range of trade for the coming expiry on 3rd June.

Stock scanner

Long buildup: IndusInd Bank, Eternal, Adani Ports

Short buildup:

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

Top traded options contracts: SBI 850 CE, INFY 1700 CE

F&O securities under ban: NIL

F&O securities out of ban: NIL