Trade setup for April 30: Can NIFTY50 break the range of 24,000-24,300 on Thursday?

The GIFT NIFTY future indicates a weak start for today’s trading session amid mixed global cues. The benchmark indices bounced back from the previous day’s lower levels to close ~0.5% higher on Wednesday. The gains were capped in the later part of the trading session as selling emerged at the higher levels.

Broader investor sentiment could remain sour as crude oil prices remain elevated. Brent crude oil prices steadied above $110 per barrel, extending their weekly gains to ~12%. The standoff between the US and Iran has led to a major blockade of crude oil exports from the region.

US markets saw a major swing during extended trading hours after megacap companies announced their quarterly earnings on Wednesday. Shares of Alphabet, Amazon and Microsoft jumped up to 7%, while Meta shares slid nearly 7% in extended trading hours on Wednesday.

Broadly, the sentiment remains cautious with weak Asian market opening, consistent FII selling and rising crude oil prices.

NIFTY50 chart check

The NIFTY50 bounced back from the previous day’s lows to reclaim the key psychological level of 24,000 on Wednesday. However, on daily charts, the index failed to close above the 50 EMA of 24,195, which is a near-term resistance level. The index made an intraday high of 24,334, but closed at 24,177 as selling pressure emerged at higher levels. The chart set-up is the same as yesterday, with the 50 EMA as a crucial resistance and the 20 EMA level as the crucial support.

NIFTY50 OI analysis

The open interest data for the coming weekly expiry on May 5 suggests a range-bound trade between 24,000 and 24,500. The 24,500 calls hold the highest open interest, indicating a crucial resistance and on the flipside, 24,000 puts hold the highest open interest, indicating a strong support on the downside.