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  1. Trade setup: NIFTY50 bounces back, will the rebound sustain on Tuesday?

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Trade setup: NIFTY50 bounces back, will the rebound sustain on Tuesday?

Upstox

2 min read | Updated on August 05, 2025, 07:48 IST

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SUMMARY

GIFT NIFTY futures indicate a 22-point gap down opening for Indian indices on Tuesday. The options data indicates 24,600 as the new support level with strong open interest addition on Monday. On the upside, the 25,000 calls hold the highest open interest, indicating a strong resistance level.

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Eicher Motors among was top gainers in the NIFTY50 index, the stock rose 2.21% to close at ₹5,518. | Image: Shutterstock

NIFTY50

Max call OI:25,000

Max put OI:24,600

(Ten strikes to ATM, 07 Aug Expiry)

NIFTY50 bounced back from the lower levels after investors and traders piled up on metals and index-heavyweight stocks, snapping the two-day correction. In addition, renewed optimism around global market cues and the upcoming RBI policy decision boosted the investor sentiment on Monday. However, the renewed optimism could be limited by new tariff threats by President Trump on India, citing India’s trade relationship with Russia.

Nifty50_2025-08-05_07-30-00.png On the technical front, the 24,500 support zone remains intact after yesterday’s bounce back. The index also formed an inside bar candle formation, indicating signs of reversal from the current bearish formation. Experts believe the index could trade near the support zone amid mixed global cues.
nifty05aug.png On the options data front, the 24,600 puts saw the highest open interest addition on Monday, indicating the new support level for the index. On the other hand, the 25,000 calls hold the highest open interest, indicating strong resistance at these levels for the current weekly expiry.

Stock Scanner

Long buildup: Hero MotoCorp

Short buildup: -

Top traded futures contracts: ABB India, HDFC Bank, Infy

Top traded options contracts: TCS 3200 CE

F&O securities under ban: PNB Housing

F&O securities out of the ban:

To access a specially curated smartlist of the most traded and active stocks, as well as the OI gainers and losers, simply log in: https://pro.upstox.com/ ➡️F&O➡️Options smartlist/Futures smartlist In Futures and Options or F&O, long build-up means an increase in Open Interest (OI) along with a price increase, and short build-up means an increase in Open Interest(OI) along with a price decrease. Source: Upstox and NSE.

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.

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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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