Trade setup for Aug 3: Can NIFTY50 cross 24,500 on Monday? Check details

Crude oil futures opened in the red on Monday morning after the US cancelled attacks on Iran. President Trump said the peace talks with Iran will resume today. Brent crude oil futures fell 7% to hit the $82 per barrel mark on Monday morning.

The US stock market futures closed in the green on Friday, led by solid gains in tech stocks. The NASDAQ 100 soared 1%, followed by the S&P 500 at 0.7% and the Dow Jones at 0.5%. Amazon Inc shares rose over 15% after earnings and boosted AI-related expenditure announcements.

The Asian markets opened in the red on Monday morning as investors assessed the risks of overheating in the chip stocks. The Korean KOSPI plunged over 3.3%, and Japan's Nikkei fell over 1.5% on Monday morning, after bouncing back sharply on Friday from lower levels.

Despite the mixed global market cues, the GIFT NIFTY futures soared over 160 points at 7:50 am on Monday, indicating a gap-up opening for NIFTY50. The sharp fall in crude oil prices remains a key trigger for Indian markets in Monday’s trade.

NIFTY50 chart check

The NIFTY50 soared above 24,300 levels on Friday and managed to close above the 200 EMA on the daily charts, indicating a renewed positive momentum. However, on the hourly charts, the index could show signs of exhaustion after a strong rally in the past few trading days. The RSI of 67 indicates overbought levels, suggesting potential consolidation in the benchmark index in the coming days.

NIFTY50 open interest data

The 24,000 puts hold the highest open interest, indicating strong support on the downside. Meanwhile, the 24,000 to 24,300 puts show strong open interest concentration, indicating strong downside protection for NIFTY50. Meanwhile, the 24,600 calls hold the highest open interest, suggesting strong resistance on the upside for NIFTY50.