Expiry Day Trade Setup: Options data indicates 24,800-25,000 range for NIFTY50; here's all you need to know

NIFTY50

Max call OI: 25,000

Max put OI: 24,800

(Ten strikes to ATM, 22nd May expiry)

On technical charts, the index is expected to find support at the 21 EMA level of 24,428 on the downside. While the upside currently remains capped at the 25,000 level. Experts believe that for further upside, the index needs to close above the 25,000 levels on daily or weekly closing basis.

On the options data front, the 25,000 calls hold the highest open interest, indicating resistance for today’s expiry. Similarly, on the downside, the 24,800 puts hold the highest open interest, indicating a strong support for the current expiry.

Bullish outlook

Traders with bullish sentiment can execute a long call strategy by buying 24,800 calls. The strategy would turn profitable after the index moves above 23,900.

Bearish outlook

Traders with a bearish outlook can execute a long put strategy by buying a put strike of 24,850. The strategy would turn profitable after the index moves below the 24,695 level.

US markets

The US markets closed with sharp losses on Wednesday as investors got cautious on rising treasury yields. Participants were concerned that the yield might swell if Congress passes President Donald Trump's proposed tax-cut bill.

The Dow Jones Industrial Average declined 816.80 points, or 1.91%, to 41,860.44 levels, the S&P 500 slipped 95.85 points, or 1.61%, to 5,844.61 levels and the Nasdaq Composite slumped 270.07 points, or 1.41%, to 18,872.64 levels.

Asian markets

Following the US markets, stocks in Asia were trading in red on Thursday morning. Japan’s Nikkei 225 was trading 0.87% lower at the 36,976.52 level, while Hong Kong's Hang Seng was down 0.67% to the 23,670.85 level and the Shanghai Composite was trading at 3,380.79, declining 0.20%. South Korea's KOSPI tumbled 1.25% to trade at the 2,592.75 level.