Expiry trade setup: Will NIFTY50 defend 24,300 on Thursday? Here's all you need to know

NIFTY50

Max call OI: 24,500 Max put OI: 24,300 (Ten strikes to ATM, 30 April expiry)

NIFTY50 ended marginally higher on Tuesday amid rising tensions between India and Pakistan. Index made an optimistic start and traded higher amid ease in trade tensions between the US and its trading partners, coupled with continued foreign fund inflows that lifted investor sentiment. But soon after, the index pulled back from the resistance levels of 24,450-24,500. On technical charts, the index is on the verge of forming an evening star pattern, which indicates a probable reversal in the investment stance from slightly bullish to bearish. Experts believe the recent swing high of 24,457 could remain as a near-term resistance for the index.

On the 15-minute chart, the index continued to defend the 21 EMA levels. However, a breakdown below the 50 EMA level of 24,300 could lead the index to the 24,000 level.

Options Buildup

On the options front, 24,300 put witnessed a strong open interest addition and also hold the highest open interest, indicating the support for today’s expiry. Similarly, 24,500 could act as a resistance level with the highest open interest on the call side.

Bullish outlook

Traders with bullish sentiment can execute a long call strategy by buying 24,300 calls. The strategy would turn profitable after the index moves above 23,363.

Bearish outlook

Traders with a bearish outlook can execute a long put strategy by buying a put strike of 24,350. The strategy would turn profitable after the index moves below the 24,280 level.

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