Trade setup for July 10: Can NIFTY50 close above 24,000 on Friday?

Taking cues from Asian markets and recovery in the US market performance, GIFT NIFTY futures surged over 150 points at 7:45 am, indicating a positive start for the NIFTY50 on Friday. Fall in Brent crude oil prices could support the market sentiments today.

Brent crude oil prices slipped over 4% to near $76 per barrel as investors reassessed the severity of risks in the Middle East. The transit route through the Strait of Hormuz remains largely stable after the recent attacks by the US on Iran.

Wall Street staged a recovery on Thursday, fueled by a bullish sentiment in semiconductor shares. The tech-focused NASDAQ 100 climbed more than 430 points or 1.4%, as investor interest surged following Micron's decision to scale its total investment to $250 billion by 2030. Concurrently, the S&P 500 advanced over 0.7%, while the Dow Jones finished the session with a 150-point gain.

Asian markets are trading in the green on Friday morning. The Japanese Nikkei is up 2.1%, the Korean KOSPI is trading 3.6% higher. Meanwhile, Hang Seng trades 0.6% higher around 24,190.

NIFTY50 chart check

NIFTY50 ended Thursday’s session with nominal gains, successfully stalling the bearish follow-through momentum. Despite the recovery, the index struggled to reclaim the pivotal 24,000 threshold on a closing basis. Technically, the hourly structure stays cautious-to-bearish unless the index secures a sustained move above the 20 and 50 EMA levels during Friday’s trade.

On the daily time frame, the index is holding firm near the 50-day EMA support of 23,900. A decisive weekly close beyond the 24,100 territory would signal a revival in bullish strength for the upcoming week. Conversely, a weekly close below 23,800 would leave the index vulnerable to a gap-fill move toward the 23,600 zone.

NIFTY50 open interest analysis

The open interest data for coming weekly expiry suggests a broad range of trade for NIFTY50 within 23,600 to 24,200. The 23,600 puts hold the highest open interest suggesting a strong support and 24,200 calls hold the highest open interest, indicating a strong resistance for coming weekly expiry. Additionally, calls above 24,100 witness strong unwinding of position, indicating a short covering rally above 24,200 levels. On the flip side, the 23,900 and 23,800 puts witness strong open interest addition, indicating a support at multiple levels.