Trade setup for Aug 14: Can NIFTY50 give a weekly close above 24,400 on Friday?

The GIFT NIFTY futures traded 28 points lower, suggesting a muted start for NIFTY50 on Friday. The volatility and range-bound trading activity are expected to prevail amid the absence of fresh cues.

Crude oil prices hovered near the $86 per barrel mark on Friday morning, after hitting lower on Thursday as investors adopt a wait-and-watch mode. Meanwhile, efforts continue to remove the deadlock between Iran and the US and reopen the Strait of Hormuz.

The US stock markets extended their record run on Thursday as the S&P 500 hit fresh record highs, surging 0.5%. Meanwhile, the Dow Jones settled 70 points higher, and the NASDAQ 100 surged 1% on Thursday, led by a rally in chip stocks.

The Asian markets extended their rally on Friday morning, as the Japanese and Korean indices surged by as much as 1%. Meanwhile, the Chinese and Hong Kong markets displayed a bearish tone by falling over 1% on Friday morning.

NIFTY50 chart summary

NIFTY50 is set to close the week on a negative note, snapping a two-week winning streak. During Thursday’s trading session, the index closed below the hourly 20 and 50 EMA levels, suggesting short-term range-bound trading activity. On the daily charts, the index closed below the 200 EMA level of 24,408 at 24,395. A Friday close below the 24,400 level would further signal weakness for the near term.

NIFTY50 open interest summary

The open interest data for coming weekly expiry suggests a broader range for trading between 24,000 and 24,800. The 24,800 calls hold the highest open interest, suggesting strong resistance for coming weekly expiry. On the flipside, the 24,000 puts hold the highest open interest, suggesting a strong support on the downside.