Trade setup for July 15: Can NIFTY50 defend 24,000 on Wednesday? Check details

Crude oil prices advanced for the third consecutive session as the situation in the Middle East remained tense. Brent crude oil prices jumped above $85 per barrel on Wednesday morning amid fresh strikes by the US on Iran. Meanwhile, President Trump decided to abandon the 20% fee on cargoes shipped through the Strait, in exchange for trade and investment deals by various Gulf countries with the US.

US markets closed mixed on Tuesday as softer inflation data eased rate-hike worries among investors. The Dow Jones closed flat with 8 points gain. The NASDAQ 100 jumped over 300 points amid a rally in the chip stocks.

Taking cues from the overnight gains in the US chip stocks, markets in Japan and Korea bounced back sharply from lower levels. The Korean KOSPI soared over 7%, followed by the Japanese Nikkei and Hong Kong’s Hang Seng with nearly 1% gains on Wednesday morning.

GIFT NIFTY futures traded flat on Wednesday morning, amid mixed global market cues, indicating a flat start for the NIFTY50.

Chart check

The NIFTY50 snapped its three-day winning streak on Tuesday as the index fell over 0.6%. The index opened below the hourly 20-day and 50-day EMAs and continued to trade below it throughout the session, indicating a sell-on-rise sentiment adopted by the investors.

However, on the daily charts, the index defended the crucial support of the 20-day EMA near the 24,000 zone. The index made an inverted hammer candlestick pattern, suggesting a bearish outlook on Wednesday, unless it closes above Tuesday's swing high level of 24,150.

NIFTY OI analysis

The initial buildup for the coming weekly expiry indicates a narrow range of trade for NIFTY50 on Wednesday. The 24,100 calls hold the highest open interest, indicating near-term resistance. While the 24,000 puts hold the highest open interest, suggesting a strong support.