Trade Setup for December 18: Will NIFTY50 Rebound on Thursday?

After closing negatively for the third day in a row amid weak global signals, the NIFTY50's Thursday outlook appears uncertain. Banking sector declines, particularly from HDFC Bank and ICICI Bank (both down 1.0%), contributed to the downward pressure on Indian indices.

Global markets suggest continued weakness, with key U.S. indices closing sharply lower, especially in the tech sector. Asian markets also started Thursday morning in negative territory, mirroring overnight losses in the U.S.

From a technical analysis perspective, the NIFTY50's close below its 20-day Simple Moving Average (SMA) of 25,990 indicates increasing bearish sentiment. The 50-day Exponential Moving Average (EMA) level of 25,765 is a critical support level to monitor in the near term.

Options data reveals significant open interest at the 26,000 call strike, suggesting a strong resistance point for the NIFTY50 on Thursday. Conversely, the 25,500 put strike continues to show the highest open interest, indicating a solid support level for the current expiry cycle.

Here's a summary of other key data:

• Maximum Call Open Interest:** 26,000
• Maximum Put Open Interest:** 25,500
• (Based on ten strikes to the at-the-money level, December 23rd expiry)*
• Stocks with Long Buildup:** Shriram Finance
• Stocks with Short Buildup:** Max Healthcare
• Top Traded Futures Contracts:** Vedl, SBI
• Top Traded Options Contracts:** HDFC Bank 1000 CE, SBI 1000 CE
• Securities Under F&O Ban:** Bandhan Bank, Samman Capital
• Securities Removed From F&O Ban:** (None)

*Disclaimer: Trading in derivatives carries substantial risk and is suitable only for experienced traders who understand these risks and use risk management tools like stop-loss orders. This information is for informational purposes only and should not be redistributed. We do not provide recommendations for specific stocks, securities, or trading strategies. Any securities mentioned are for illustrative purposes only.*