Trade setup for Aug 13: Can NIFTY50 bounce back above 24,500 on Thursday?

The GIFT NIFTY futures traded 37 points lower, indicating a muted start for NIFTY50 on Thursday morning.

Crude oil prices hovered near the $88 per barrel mark on Thursday morning, as uncertainty lingers over the crisis in the Middle East. The deadlock between the US and Iran continues as investors assess the prospects of reopening the Strait of Hormuz.

The US stock markets ended mixed across the board as investor optimism grew around chip stocks. The Dow Jones closed flat, with a loss of 22 points. Meanwhile, the S&P 500 and the NASDAQ 100 rose 0.3% and 0.7%, respectively.

Taking cues from the overnight gains in the chip stocks, the Asian markets rose sharply in Japan and Korea. The benchmark KOSPI rose 4%, and the Japanese Nikkei rose over 1,100 points or 1.6% on Thursday morning.

NIFTY50 chart summary

The NIFTY50 staged a robust recovery from its intraday lows, ending Wednesday with a marginal 35-point loss. On the hourly timeframe, the index successfully defended the 200 EMA support at 24,239. Similarly, the benchmark index preserved its bullish bias on the daily charts by holding above the vital 24,400 level. The formation of a bullish hammer candlestick pattern highlights significant buying interest near crucial support zones. A sustained move above Wednesday’s high will confirm the bullish reversal. In the near-term, the 24,600 consolidation zone remains an immediate hurdle, followed by the previous swing high of 24,770.

NIFTY open interest summary

The open interest data for Thursday indicates strong OI buildup on the put side after the sharp bounce back from the lower levels. The 24,000 puts hold the highest open interest, indicating strong support on the downside. On the flip side, 24,500 holds a crucial hurdle for NIFTY50, with the highest open interest on the upside.