Trade setup on May 21: NIFYT50 faces resistance at 25,000; Here's all you need to know

Asian markets traded mixed on Wednesday morning with all major indices trading in green except for Japanese indices. The Hong Kong and Korean indices traded with gains of up to 0.5% on Wednesday morning .

US markets closed in red across the board on Tuesday with Dow Jones, S&P 500 and NASDAQ closing with losses of up to 0.8%. The three day rally was snapped due to cautiousness around Trump’s policies and rising middle east tensions.

NIFTY50

Max call OI:25,000

Max put OI:24,500

(Ten strikes to ATM, 22nd April Expiry)

NIFTY50 witnessed sharp selling on Tuesday amid profit booking at the higher levels. Heavy selling by the foreign institutional investors largely drove the correction for the third consecutive session. The foreign investors sold more than ₹10,000 crore on Tuesday, and DII bought equities worth ₹6,300 crore.

On technical charts, NIFTY confirmed the inverted hammer pattern by closing below yesterday’s closing price. Experts believe the index could find support on the daily charts at the 21 EMA levels of 24,404. On the options front, 25,000 calls witnessed heavy open interest addition on Tuesday, indicating the highest open interest at these levels. On the downside, 24,500 puts hold the highest open interest, indicating support.

Stock scanner

Long buildup: Coal India,

Short buildup: Eternal, Hero MotoCorp

Top traded futures contracts: BEL, DLF

Top traded options contracts: Infy 1600 CE, Reliance 1450 CE,

Under F&O ban: Manappuram, RBL Bank

Out of F&O ban: Hind Copper, Titagarh

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