Trade setup: NIFTY50 rebounds from lower level, maintains 25,000 as key support; check details

GIFT NIFTY futures indicate a 90-point gap down opening on Wednesday after overnight losses in the US equity markets. The Dow Jones fell nearly 1% after the US CPI for June came 0.3% higher MoM and 2.3% higher over the previous year. Shares of Nvidia Corp. gained 4% on reports that it is resuming H20 chip exports to China.

NIFTY50

Max call OI:25,500

Max put OI:25,000

(Ten strikes to the ATM, 17 July expiry)

The benchmark indices rebounded from lower levels on Tuesday amid positive global cues. The NIFTY50 and SENSEX closed 0.4% higher, rebounding from their key support levels. However, the index remains in the broader consolidation range of 25,000 to 25,500. Experts believe a close above 25,500 can resume the rally towards 26,000.

On technical charts, the index formed the same open-low candle on Tuesday, indicating a strong reversal from 25,089 levels. However, the index encountered resistance at the 21-day EMA level. A close above the crucial 21 EMA on Wednesday could lead to a rally towards the 25,500 levels. On the options data front, the 25,500 calls continue to hold the highest open interest on the upside, indicating a strong resistance for tomorrow’s expiry. Similarly, 25,000 puts hold the highest open interest on the downside, indicating crucial support.

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Long buildup: Sun Pharma, Shriram Finance

Short buildup: HCL Technologies

Top traded futures contracts: HCL Technologies, Infy, SBIN, BSE

Top traded options contracts: SBIN 840 CE, SBIN 850 CE

F&O securities under ban: Glenmark, Hind Copper, RBL Bank

F&O securities out of the ban:

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