Trade setup for Oct 13: Will NIFTY50 bounce back on Monday after a gap down opening?

NIFTY50

Max call OI:25,500

Max put OI:25,200

(Ten strikes to ATM, 14 Oct expiry)

Indian markets are expected to open on a negative note, following weak global cues. The US president announced 100% tariffs on China in response to later’s curbing of rare earth element exports. However, President Trump on Sunday posted on a social media platform to help China, instead of hurting it. Following the post, the US market futures are showing nearly 2% recovery from Friday’s fall.

On the technical front, the NIFTY50 crossed the crucial resistance level of 25,200 on a weekly closing basis, indicating a sign of renewed bullish momentum in the markets. However, the index faces another crucial resistance of the swing high trend line at 25,300. Experts believe that for bullish momentum to further accelerate, the index should close above the 25,300 levels.

On the options data front, the 25,200 puts witnessed heavy open interest addition and also the highest open interest for tomorrow’s expiry, indicating strong support. On the upside, the 25,500 calls hold the highest open interest, indicating a strong resistance for the expiry.

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Long buildup: - Cipla, Maruti

Short buildup: -

Top traded futures contracts: TCS, SBIN

Top traded options contracts: TCS 3100 CE, SBIN 2900 CE

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