Trade setup for Aug 6: Can NIFTY50 defend 200 EMA on Thursday? Check details

Indian benchmark indices are set to open on a positive note on Thursday despite the mixed global market cues. The GIFT NIFTY futures traded 65 points higher on Thursday morning, suggesting a positive opening for NIFTY50. Crude oil prices faced downward pressure as geopolitical tensions in the Middle East began to ease.

Meanwhile, the Asian markets traded in deep red amid profit booking in the chip stocks across Japan and South Korea. The benchmark Nikkei plunged 940 points or 1.7% and the Korean KOSPI fell over 5% as shares of SK Hynix and Samsung plunged as much as 9% on Thursday morning.

The US stock market ended mixed on Wednesday after extending their record run. While the Dow Jones closed 230 points higher, the S&P 500 and the NASDAQ pared major gains and closed 0.1% and 240 points lower on Wednesday.

Brent crude oil prices remained subdued near $80 per barrel level as an Oman-brokered peace deal is expected to be announced soon.

NIFTY50 chart summary

The NIFTY50 closed almost flat on Wednesday amid final-hour pricing volatility. The benchmark index managed to defend the 200-EMA moving average, indicating sustained momentum in the index at higher levels. Meanwhile, the 24,750 level remains a crucial resistance for NIFTY50, and the 200-EMA level of 24,500 remains a crucial support in the near term. The price consolidation is also expected to continue as the final-hour volatility due to the CAS pricing mechanism settles.

NIFTY50 open interest summary

The change in open interest data on Wednesday indicates strong open interest buildup on the higher side, indicating strong resistance at every level. The 25,000 calls hold the highest open interest, indicating near resistance level. Meanwhile, the 24,200 puts hold the highest open interest, indicating strong support for the index.