Can NIFTY50 defend 24,000 on Wednesday? Here is what chart and open interest data says

GIFT NIFTY futures trade near flat lines with a positive bias, indicating a flat-to-positive opening for NIFTY50 on Wednesday. Elevated crude oil prices and geopolitical instability could weigh down on the investor sentiment today.

The US stock market ended in the red on Tuesday as elevated crude oil prices brought back the fears of inflation and rate hike. The Dow Jones and the S&P 500 closed 0.3% and 0.6% respectively. Meanwhile, NASDAQ 100 fell over 500 points or 1.6% on Tuesday.

Following the overnight losses in the US tech stocks the Korean and Japanese markets plunged in the sea of red on Wednesday morning. The Korean KOSPI fell over 5%, followed by Japanese NIkkei at -2.5% and the Shanghai Composite at -2.4%.

The crude oil prices remained steady above $91 per barrel on Wednesday morning for the third consecutive session. The US President said, that the US administration is in no talks with Iran, fading the hopes of interim peace deal.

NIFTY50 chart summary

NIFTY50 closed 132 points lower on Tuesday, below the crucial support benchmarks. On the daily charts, the index failed to defend the pivotal 50 EMA support level at 24,200. Similarly, the index is now poised to fill the gap created on July 29, below which the support can be found at 24,000 levels.

Going forward the near term resistance remains at 24,200 and the pivotal support stands at 24,000. However, fresh bullish momentum can only be expected above 24,400 levels, which remains a major hurdle for bulls.

NIFTY50 open interest summary

The open interest data for next weekly expiry suggests broader trading range of 24,000 to 24,400. The 24,000 puts hold the highest open interest, indicating near term support for the index. On the other hand, 24,400 calls hold the highest open interes, indicating a strong resistance for the near term.