Trade setup for April 23: Can NIFTY50 defend 50 EMA level on Thursday? Check details

Indian benchmark indices are once again under pressure as crude oil prices surge back above $100 per barrel. As the US-Iran talks stand in limbo, the Strait of Hormuz remains effectively closed for all commercial traffic, hitting the crucial energy supply to Asian nations. However, there is some relief in the situation after the US President announced an indefinite ceasefire until Iran hands over a suitable proposal.

Meanwhile, the US stock markets are hitting fresh record high levels, led by a strong rally in tech stocks. The NASDAQ jumped 1.7%, and the S&P500 rose a little over 1% on Wednesday. Chip stocks like AMD, Micron and Broadcom soared over 5% amid renewed optimism around AI stocks.

The IT companies will continue to remain in focus as the weak guidance after stable results continues to worry investors. Among the major result reactions, Trent shares will remain in focus after the company’s Q4FY26 net profit jumped 32% YoY.

Alongside this, the FII selling has resumed after a few days of net buying. The FIIs sold over ₹2,000 crore worth of Indian equities on Wednesday. In addition to this, the DII’s too sold a little over ₹1000 crore on Wednesday, indicating increased selling pressure at higher levels.

NIFTY50 chart check

The daily charts indicate a broad consolidation in the NIFTY50 amid a volatile trading session. The index continued to trade in the range of 24,200 to 24,600 for six trading sessions, suggesting time consolidation in the index. However, the index could switch to price correction mode if it closes below the 50 EMA level of 24,224. On the flipside, 24,500 remains a near-term resistance, and 24,800 remains long-term protection on the upside.

NIFTY50 OI Analysis

The latest open interest data for the coming monthly expiry suggests 24,500 as a crucial resistance level, with the highest open interest on the call side. Similarly, 24,400 and 24,500 call strikes witnessed strong open interest addition on Wednesday, indicating limited upside above these levels. On the other hand, 24,000 puts hold the highest open interest, indicating a near-term support for the coming weekly expiry.