Trade setup for July 2: Can NIFTY50 extend the gains above 24,000 on Thursday?

Bucking the global market rout, the Indian markets are expected to open in the green on Thursday. The GIFT NIFTY futures jumped over 130 points on Thursday morning, suggesting a gap-up opening for NIFTY50.

The sharp fall in crude oil prices to below pre-war levels and overstretched valuations in the global markets make Indian markets appear affordable at current levels.

Brent crude oil prices slumped to $70 per barrel on Thursday morning, reaching the lowest level since February 2026, as shipments through the Strait of Hormuz continued to increase.

The US markets closed in the red across the board, led by a sell-off in technology stocks. The NASDAQ plunged 1.5%, while the S&P 500 fell 0.2%. Chip-makers’ shares fell the most as investors grew anxious about the overspending on AI infrastructure. Micron plunged 10%, AMD lost 6.9%, and Intel plunged 9%. Meta shares jumped 8% on plans to build a new cloud business.

The Asian stock markets remain under pressure for the second consecutive day. The Korean benchmark index, KOSPI, was trading 2.2% lower, while Japan’s Nikkei fell 1% amid the overnight rout in US tech stocks.

NIFTY50

The NIFTY50 bounced back from lower levels on Wednesday, led by heavyweights like Reliance, SBI and M&M. The index crossed the crucial benchmark of 24,000 after defending the 20 and 50 EMA levels. The bullish crossover setup of the 20 EMA crossing the 50 EMA from below remains intact, suggesting a revival in momentum above the 24,200 level.

NIFTY OI Analysis

The sharp bounceback on Wednesday has made significant changes in the open interest data for the coming weekly expiry. 24,100, 24,200, and 24,300 calls witnessed strong unwinding of open interest, indicating a short-covering rally above 24,250 levels. On the flip side, 24,000 puts hold the highest open interest, suggesting strong support for NIFTY50.