Trade setup for Oct 23: Will NIFTY50 sustain the gap-up opening on Thursday?

NIFTY50

Max call OI:26,000

Max put OI:25,500

(Ten strikes to the ATM, 28 Oct expiry)

NIFTY50 closed marginally higher on the muhurat trading session on Tuesday, maintaining its winning streak. The index is expected to continue to remain buoyant after media reports suggest a strong and favourable India-US trade deal by month end. Following the reports, the GIFT NIFTY futures jumped over 400 points on Wednesday and traded over 26,232 on Thursday morning, indicating a sharp gap-up opening for Indian markets.

On the technical front, the NIFTY50 showed signs of consolidation at higher levels at the crucial psychological levels of 26,000. Experts believe, after a sharp rally, the index could consolidate further before giving a breakout above new all-time high levels. On the downside, the support remains at 25,300 levels, which was the crucial resistance of the previous swing high trend line.

On the options data front, the 26,000 calls hold the highest open interest, indicating a strong resistance for the current monthly expiry. Similarly, the 25,500 puts hold the highest open interest on the downside, indicating strong support on the downside.

Stock Scanner

Long buildup: -

Short buildup: -

Top traded futures contracts: ICICI Bank, Reliance

Top traded options contracts: Infy 1460 CE

F&O securities under ban: Samman Cap

F&O securities out of the ban:

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 or strategies for trading. The securities quoted are exemplary and are not recommended. The stock names mentioned in this article are purely for showing how to do analysis