Trade setup for July 14: Can NIFTY50 defend the gains on the expiry day? Check details

Indian benchmark indices are expected to open in the red amid renewed tensions in the Middle East. GIFT NIFTY futures were trading 150 points lower at 7:45 am on Tuesday, indicating another gap-down opening for the NIFTY50. Elevated crude oil prices and currency pressures could take a toll on investor sentiment.

Brent crude prices surged on Monday, marking one of the highest single-day gains since the US-Iran war began. After crossing the $ 84-per-barrel threshold, the rally persisted into Tuesday morning, following President Trump's announcement of a 20% blockade levy on all maritime traffic navigating the Strait of Hormuz.

Amid renewed tensions in the Middle East, US investors chose to book profits in tech stocks. The NASDAQ 100 tumbled over 1.5%, while the S&P 500 fell 0.79% and the Dow Jones slipped 0.2%.

The Asian markets extended their losses on Tuesday as Trump’s new blockade fee announcement affected investor sentiment in the major oil-importing markets in Asia. The KOSPI fell over 1.4%, while the Nikkei and Hang Seng fell 0.2% each on Tuesday morning.

NIFTY50 chart

The NIFTY50 closed flat on Monday, after bouncing back over 200 points from the intraday low. The index successfully defended the crucial resistance level of 24,200. The index also managed to close above the 20-day and 50-day EMAs on an hourly basis, sustaining the short-term momentum in the index.

On the daily charts, the index made a bullish engulfing candlestick pattern, enveloping Friday’s gains. Despite a gap-down opening, the index closed in green, which indicates buying pressure near 24,000 levels.

NIFTY50 open interest analysis

After Monday’s bounce back from lower levels, the 24,000 puts witnessed strong open interest addition and held the highest open interest, indicating 24,000 as a crucial support level for today’s expiry trade. Similarly, on the upside, 24,500 calls hold the highest open interest, indicating a strong resistance for NIFTY50 on Tuesday.