Trade setup for Nov 10: Will NIFTY50 resume momentum on Monday?

NIFTY50

Max call OI:26,000

Max put OI:25,000

(Ten strikes to ATM, 11 Nov expiry)

NIFTY50 closed the previous week with nearly a percentage point loss amid weak global cues and selling pressure at higher levels. Banking and metal stocks continued to remain top losers for the previous week. NIFTY50 is expected to open flat on Monday morning, owing to mixed global cues. The US market futures indicate a buoyant opening for US markets late in the day, as certain media reports suggest the prolonged US government shutdown could end soon.

On the technical front, the NIFTY50 closed below the crucial support levels of 25,700 in the previous week, indicating pain in the momentum. The index also closed below the short-term 21-EMA moving average level of 25,578. Experts believe the index could regain the bullish momentum after closing above 25,580 levels on a weekly basis.

On the options data front, 25,000 puts held the highest open interest, indicating the near-term support for tomorrow’s expiry. The 26,000 calls held the highest open interest on the upside, indicating near-term resistance for the index.

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Long buildup: - Shriram Finance

Short buildup: - Bharti Airtel, Tech Mahindra

Top traded futures contracts: BSE, Bharti Airtel

Top traded options contracts: SBI 890 CE

F&O securities under ban:NIL

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