Trade setup for April 25: NIFTY50 in consolidation mode, 24500 remains key resistance; check details

Asian Markets at 7 AM

Nikkei:35,535 (+1.4%)

Hang Seng: 22,081 (+0.81%)

US markets

Dow Jones: 40,093 (+1.23%)

NASDAQ: 17,166 (+2.7%)

S&P500: 5,484 (+2.03%)

The US markets closed with heavy gains on Thursday amid reports of trade talks with China surfaced again. In addition, the Cleveland Federal Reserve President hinted at a rate cut in June if the data supports the scenario. The gains were largely driven by megacaps as shares of Nvidia, Apple, Meta, and Amazon surged up to 3.5%.

NIFTY50

Max call OI:24,500 Max put OI:24,000 (Ten strikes to ATM, 30 April Expiry)

NIFTY50 snapped its seven-day winning streak and ended lower on Thursday amid resurfacing US-China trade war fears. The index made a flat-to-negative start, followed by negative cues from other Asian markets. Soon, it showed some volatility and continued to trade in red territory. The index is seen in a consolidating mode with a positive bias on technical charts. Experts believe buying at lower levels will continue to hold the index above the 24,000 level. However, the upside also remained capped at the 24,500 level. On the options front, the initial buildup for 30 April expiry suggests a similar range for the NIFTY50 to trade. 24,500 calls hold the highest open interest, and 24,000 strike puts hold the highest open interest, indicating resistance and support at respective levels.

SENSEX

Max call OI:80,000 Max put OI:80,000 (Ten strikes to ATM, 29 April Expiry)

SENSEX snapped a seven-day winning streak by closing over 300 points down on Thursday. The losses were largely led by FMCG stocks like Hindustan Unilever after the company reported its Q4 results in line with expectations. However, weak guidance soured investor sentiments. On the technical charts, the recent swing high of 80,254 could remain a key resistance level for the near term. Experts believe the index could rally further after breaking the recent swing high level on a closing basis. On the options front, the initial buildup for 29 April expiry indicates the 80,000 level as crucial for traders as it holds highest open interest on both side.

Stock scanner

Long build-up: IndusInd Bank, Grasim

Short build-up: Hindustan Unilever, Eicher Motors

Top traded futures contracts: HDFC Bank, Bajaj Finance

Top traded options contracts: Infy 1600 CE

Under F&O ban:, Mannapuram, RBL Bank Out of F&O ban: Birlasoft, Hindustan Copper, National Aluminium, IREDA.

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