Trade setup for July 23: NIFTY50 continues trade in 25,000 to 25,200 range; check details

NIFTY50

Max call OI:25,100

Max put OI:25,000

(Ten strikes to ATM, 24 July Expiry)

The NIFTY50 continued to trade in consolidation mode and yet in a narrow range of 200 points between 25,000 to 25,200. The index continues to witness selling pressure at 25,200 to 25,250 zone restricting the index to breakout from the consolidation zone. The global market cues remain buoyant with the US benchmark indices hitting new highs. However, mixed earnings from the index participants have kept the index in range.

On the technical charts, the index faces resistance at the 21 EMA levels of 25,180 and has traded below it for the eighth consecutive session, indicating the absence of fresh bullishness at the higher levels. However, it also held the support of the 50 EMA, keeping the hopes alive for bullish traders.

On the options data front, the 25,200 calls witnessed heavy open interest addition on Tuesday, while 25,100 calls hold the highest open interest for the current expiry, indicating near-term resistance for the index. Similarly, on the downside, the 25,000 puts hold the highest open interest, indicating near-term support for the index at these levels.

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Long buildup: Eternal

Short buildup: Eicher Motors, Shriram Finance

Top traded futures contracts: HDFC Bank, ICICI Bank, Eternal

Top traded options contracts: Reliance 1480 CE, Reliance 1460 CE

F&O securities under ban: Bandhan Bank, RBL Bank, IEX

F&O securities out of the ban:

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