Expiry Trade setup: Options data shows narrow range of 24,300 to 24,500 for NIFTY50; here's all you need to know

NIFTY50

Max call OI: 24,500

Max put OI: 24,300

(Ten strikes to ATM, 08 May expiry)

NIFTY50 opened lower on Wednesday as India and Pakistan tensions rose after India attacked Pakistan. However, the index managed to close in green by recouping all the losses. The recovery was largely led by index heavyweights like HDFC Bank and M&M, which pulled the index higher by 60 points.

On the technical charts, the index took intraday support of 24,220 and closed slightly above 24,400. On 15-minute chart, the index traded above the 20 and 50 EMA levels, indicating strength in the recovery from lower levels. Experts believe that, previous day’s low of 24,220 could act as a strong support for today’s trading session. On daily charts, the index continues to trade in a range of 24,000 to 24,500, keeping traders on the edge for a breakout. Experts believe the index is expected to consolidate further before it gives a breakout on either side of the range.

The options data for today’s expiry shows a very narrow range of 24,300 to 24,500 trades. The 24,500 calls hold the highest open interest, acting as strong resistance. On the flip side, 24,300 levels witnessed heavy open interest addition on Wednesday, indicating support at respective levels.

Bullish outlook

Traders with bullish sentiment can execute a long call strategy by buying 24,400 calls. The strategy would turn profitable after the index moves above 23,441.

Bearish outlook

Traders with a bearish outlook can execute a long put strategy by buying a put strike of 24,450. The strategy would turn profitable after the index moves below the 24,354 level.

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