Trade Setup for May 26: Traders advised caution in June series as Nifty 50 consolidates

After four days of failing to find support at higher levels, the Nifty 50 index ended the May F&O series on a positive note, having recovered 120 points from the day's low. The index closed above the 18,300 mark and has now ended higher in four out of the last five trading sessions.

The Nifty 50 index gained 405 points in the May F&O series, marking its second consecutive positive expiry. The last time the Nifty 50 had consecutive positive F&O series' was back in October and November of last year.  However, despite the last hour recovery, the index could not surpass Wednesday's high of 18,392, but fell below the low of 18,262.

Rollovers in the Nifty 50 futures stood at 70.61 percent, which was higher than last month's figure of 64.11 percent and marginally higher than the three-month average of 69.98 percent. The index will also begin the new F&O series with an Open Interest of 92.3 lakh shares, compared to 89.62 lakh shares at the start of the may series.