Trade setup for Dec 15: Will NIFTY50 hold the gains above 26,000 on Monday?

After recovering most of its losses from earlier in the week, the NIFTY50 closed above the key 26,000 level on Friday. This rebound occurred across two trading sessions, boosted by positive global market signals following the Federal Reserve's interest rate decision. That said, the reality is a bit more complicated. U.S. markets ended Friday in negative territory as investors grew concerned about potentially overvalued AI stocks.

The Nasdaq led the decline in the U.S., falling nearly 2%, followed by the S&P 500 (down 1%) and the Dow Jones (down 0.5%). Weaker global cues are expected to impact the Indian markets, with GIFT NIFTY futures trading 82 points lower, suggesting a gap-down opening on Monday morning.

From a technical analysis perspective, the NIFTY50 currently suggests a period of consolidation and uncertainty. The index rebounded from its 50-day EMA (Exponential Moving Average) levels last week and managed to close above the 20-day EMA on Friday. Analysts suggest that a weekly close above 26,200 could trigger further upward momentum, potentially leading to a new record high for the index.

Analyzing options data reveals that the 26,500 call options exhibit the highest open interest, indicating a significant resistance level for the near-term expiry. Conversely, the 26,000 put options show the highest open interest, suggesting a strong support level.

**Stocks in Focus:**

• Long buildup: Hindalco
• Short buildup: Hindustan Unilever
• Top traded futures contracts: Hindustan Zinc, Idea
• Top traded options contracts: Reliance 1600 CE
• F&O securities under ban: Bandhan Bank, Samman Capital
• F&O securities out of the ban: Kaynes Technologies

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