Trade setup for April 16: Can NIFTY50 defend 50 EMA on Thursday? Check details

Indian markets are expected to open in green on Thursday amid positive global cues. The buoyancy is largely driven by optimism around de-escalation in the Middle East conflict and record run in the US markets.

The precious metal prices are back in the spotlight as the US and Iran plan to meet for a second round of talks. Gold prices firmed up nearly 1% to $4,870 per ounce, and silver prices jumped over 1.5% to $80 per ounce on Thursday morning as investors reassessed the risks in precious metals after the US dollar index softened to $98 against a basket of currencies.

The crude oil prices remained steady around $93 per barrel despite the effective dual blockade in the Strait of Hormuz. Reports suggest that the US is considering extending the two-week ceasefire to facilitate the ongoing round of talks.

The US markets are rejoicing in the de-escalation and a strong rally in tech stocks, as the NASDAQ and the S&P500 close at record highs on Wednesday. Tech stocks like Meta (+2%) and Broadcom (+3%) were top movers. Shares of Tesla jumped 7% after new vehicle software updates.

Key levels to watch today

• Resistance: 24,300
• Support: 23,700
• Call concentration: 24,200
• Put concentration: 24,200
• Bullish above: 24,300
• Bearish below: 23,700

NIFTY50

The index maintained the bullish momentum as it closed over 380 points higher on Tuesday. On the hourly charts, the RSI of 65 and ADX of 24 indicate a trending and bullish momentum with the next resistance at 24,500. The index also managed to close above the daily 50 EMA levels after nearly two months. The 200 EMA level remains at 24,800, which remains a long-term resistance before we see a rally towards previous record high levels.

OI analysis

The open interest data suggest indecision by traders on the direction of the markets. The 24,200 call and put strikes hold the highest open interest, suggesting a range bound trade with a bullish bias on Thursday.

Source: Upstox and NSE.

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