Trade setup for Oct 29: Will NIFTY50 consolidate further on Wednesday?

NIFTY50

Max call OI:26,000

Max put OI:25,000

(Ten strikes to ATM, 04 November expiry)

NIFTY50 traded in extreme volatility on Tuesday amid mixed global cues. The NIFTY50 hit an intraday high of 26,041 and an intraday low of 25,810. Despite the volatility, the index closed 29 points lower. Markets are expected to remain cautious ahead of the crucial Federal Reserve decision. Meanwhile, the US markets closed at new record highs on expectations of a quarter-point rate cut by the Federal Reserve.

On the technical charts, as indicated in the previous day’s trade setup, the index continues to remain in a consolidation setup. The NIFTY50 formed a doji candlestick pattern on Tuesday, indicating indecisiveness of direction in the market. However, the 25,700 remains near-term support for the index, while 26,000 holds the new resistance.

On the options data front, the early buildup for the upcoming expiry indicates strong resistance of 26,000 with the highest open interest on the call side. Similarly, the 25,500 puts hold the highest open interest, indicating a strong support for the 04 November expiry.

Stock Scanner

Long buildup: - JSW Steel, Tata Steel,

Short buildup: - Trent

Top traded futures contracts: HDFC Bank, ICICI Bank

Top traded options contracts: Infy 1600 CE

F&O securities under ban: Samman Cap

F&O securities out of the ban:

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