Trade setup for Nov 20: Will NIFTY50 hold the gains above 26,000 on Thursday?

NIFTY50

Max call OI:26,000

Max put OI:26,000

(Ten strikes to ATM, 25th Nov expiry)

Snapping the previous session’s losses, the NIFTY50 ended higher on Wednesday. Index made a cautious start following negative cues from other Asian markets. Soon, the index turned volatile but managed to gain some traction during the late morning session. On the other hand, US markets continued to trade in volatility ahead of Nvidia earnings.

On the technical front, the NIFTY50 negated the bearish engulfing pattern by closing above the 26,000 level, indicating indecisiveness in the market direction. Experts believe that, in the absence of major positive triggers, the index would continue to consolidate further with volatility.

On the options data front, the 26,000 calls and puts continued to hold the highest open interest, indicating indecisiveness by traders for the direction of the market. However, the 25,900 puts and 26,500 calls witnessed heavy open interest addition at the second level, indicating a broad range for the coming monthly expiry.

Stock Scanner

Long buildup: - HCL Technologies, Infosys, Max Healthcare

Short buildup: - Tata Motors PV

Top traded futures contracts: Infy, Hindalco

Top traded options contracts: TCS 3200, Infy 1500 PE

F&O securities under ban: NIL

F&O securities out of the ban: