Trade setup for April 28: Can NIFTY50 close above 24,200 on expiry day?

Indian benchmark indices are expected to open in the red, as indicated by GIFT NIFTY futures this morning. The GIFT NIFTY futures traded over 70 points lower owing to mixed global market cues.

Crude oil futures remained steady near $102 per barrel on Tuesday morning as the Strait of Hormuz remains effectively closed. According to news reports, Tehran has agreed to talk with the US if it removes the blockade in the Strait of Hormuz.

The tech stocks in the US continued their rally as chipmakers and AI stocks witnessed strong buying. Shares of Nvidia jumped 4% to hit new record highs of $216 per share. Alongside this, shares of Micron also jumped 5.6% on Monday to hit fresh record high levels of $531 per share.

Owing to buoyancy in the tech stocks, shares in Korea also remained resilient amongst the other Asian market peers. The Korean indices jumped over 1% on Tuesday morning, while Japanese, Hong Kong and Chinese markets opened muted.

NIFTY50 chart check

The NIFTY50 formed an inside bar candlestick pattern on daily charts, after the index bounced back from the daily 20 EMA levels of 23,951. The chart also shows that the index continues to face resistance at the 50 EMA level of 24,200. The 200 EMA level remains at 24,800, which is the long-term resistance for the index. Experts believe a closing above the 50 EMA could pave the way for the 200 EMA level.

NIFTY50 Open interest check

Ahead of the monthly expiry, the open interest data indicates that the 24,000 level is a strong support for NIFTY50 due to the highest open interest on the put strike price. On the flipside, 24,500 calls hold the highest open interest, indicating a strong resistance for NIFTY50.