Trade setup for July 3: Can NIFTY50 give sustained close above 24,250 on Friday?

Owing to positive global market cues, the GIFT NIFTY futures jumped 155 points at 7:45 am on Friday, indicating a gap-up opening for NIFTY50 on Friday.

Brent crude oil prices remained steady near the $70 per barrel level as traffic in the Strait of Hormuz resumed to full capacity. Additionally, Saudi Arabia’s oil output also rebounded to 90% of the pre-war levels, indicating a normalising supply situation in the Middle East.

The US markets showed a divergent trade on Thursday, with the Dow Jones rising 600 points to hit fresh record highs. Meanwhile, the NASDAQ closed over 200 points lower as chip stocks continued to bleed for the second day. Micron, AMD and Intel shares fall up to 6% on Thursday.

The Asian markets traded in the green on Friday morning amid buying in tech stocks in Korea and Japan. The Japanese Nikkei index rose 400 points or 0.5%; Hong Kong’s Hang Seng rallied 1.6%, while the Korean KOSPI soared nearly 3%, the most amongst the Asian peers.

NIFTY50

The NIFTY50 extended the winning streak for the second consecutive day by gaining over 140 points on Thursday. On the daily charts, the index is witnessing a positive crossover of the 20 EMA crossing the 50 EMA from below. The momentum could accelerate further if the index manages to close above the previous swing high level of 24,250. Meanwhile, the downside remains protected at 23,870.

NIFTY50 OI analysis

The NIFTY50’s open interest data for the coming weekly expiry suggest that 24,000 remains a crucial support for the index. The upside remains protected at 24,500, with the highest open interest. Meanwhile, 24,100 puts also witnessed strong open interest addition, indicating near-term support for NIFTY50.

Disclaimer: Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop losses. We do not recommend any particular stock, securities or strategies for trading. The securities quoted are exemplary and are not recommendations.