Trade setup for Sept 3: NIFTY50 faces selling pressure at 24,750, will it bounce back on Wednesday?

NIFTY50

Max call OI:25,000

Max put OI:24,500

(Ten strikes to ATM, 09 Sep expiry)

Indian markets are expected to open in the red on Wednesday amid weak global cues, as US markets fell up to 1% on Tuesday. Rising long-term bond yields across the US and UK aggravated investor concerns over financial stability in the Western economies. On the domestic front, NIFTY50 failed to carry forward the bounce back on Tuesday as the index faced selling pressure at higher levels on the expiry day.

On the technical front, the index failed to cross the 20 SMA levels of 24,750, indicating a sustained bearish trend in the index. Experts believe, bears are in control of the momentum until the index crosses 25,000 on a weekly basis.

On the options data front, the initial open interest buildup for 09 Sept expiry indicates crucial resistance of 25,000 with the highest open interest on the call side. Similarly, a crucial support at 24,500 with the highest open interest on the downside.

Stock Scanner

Long buildup: - Tata Consumer

Short buildup: - M&M, Dr Reddy

Top traded futures contracts: HDFC Bank, Reliance

Top traded options contracts: Reliance 1430 CE, HDFC Bank 1000 CE

F&O securities under ban: NIL

F&O securities out of the ban: NIL

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