Trade setup for Oct 8: NIFTY50 faces resistance at 25,200 levels, will it bounce back?

NIFTY50

Max call OI:

Max put OI:

(Ten strikes to ATM, 14 October expiry)

Indian markets showed resilience despite the global turbulence amid rising gold prices. The US markets saw profit booking at record levels as the US government shutdown continues. The domestic benchmark indices continued their rally for the fourth consecutive session on Tuesday.

On the technical front, the index posted a shooting star candlestick pattern, indicating a reversal in the bullish momentum. The index faced selling pressure at the 25,200 levels. Experts believe the index should close above 25,200 levels to negate the bearish pattern and for the index to continue its momentum rally.

On the options data front, the 25,200 calls hold the highest open interest, indicating a near-term resistance for the 14th October expiry. On the downside, 25,000 puts hold the highest open interest, indicating strong support.

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Long buildup: - Bharti Airtel

Short buildup: - Trent

Top traded futures contracts: HDFC Bank, ICICI Bank

Top traded options contracts: Infy 1540 PE, Reliance 1,350 CE

F&O securities under ban: RBL Bank

F&O securities out of the ban:

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