Trade setup for May 12: Will NIFTY50 and SENSEX breakout of consolidation on Monday? Check details

NIFTY50

Max call OI: 24,000

Max put OI:24,500

(Ten strikes to the ATM,15 May expiry)

NIFTY50 closed above the 24,000 levels, thereby defending the crucial support. The India-Pakistan tensions heightened on Friday after both nations engaged in a fierce air battle. However, soon in the evening, a ceasefire understanding was reached, and both nations agreed to it. The index is expected to open with a big gap up as the ceasefire between India and Pakistan has softened the uncertainties. In addition, on the trade war front, the US signed a trade deal with the UK and a breakthrough in a deal with China.

On the technical front, the index took support of 20 EMA on daily charts, indicating some reversal from these levels. Experts believe, Monday’s closing above the 20 EMA levels of 23,981 could confirm reversal from current levels. On the options data front, 24,000 puts hold the highest open interest for the 15 May expiry, indicating strong support at these levels. On the upside, 24,500 calls hold the highest open interest, indicating a strong resistance at these levels.

SENSEX

Max call OI:80,500

Max put OI:80,500

(Ten strikes to ATM, 13 May expiry)

SENSEX snapped the three-week winning streak by closing 1.3% lower for the week. The correction from higher levels was led by weak domestic cues and mixed global cues. The experts believe, with positive global and domestic cues, the index too break out of the consolidation range of 79,300-81,200.

On the technical front, the index took support of the 20 EMA levels at 79,144 on Friday, indicating a near-term support at these levels. With the positive global and domestic cues, the index is expected to see a big gap-up opening on Monday. On the options data front, the 80,500 holds the crucial level for the index with the highest open interest on calls and puts at the respective levels.

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