Trade setup for July 30: Can NIFTY50 reclaim 200 EMA on Thursday?

Crude oil prices extended their gains on Wednesday after the US conducted strikes on Iran in retaliation to the attacks on US military bases in the Middle East.

US stock markets closed deep in the red on Wednesday after Federal Reserve kept the interest rates unchanged in the policy meeting. The Dow Jones fell over 1,100 points or 2.1%, the S&P 500 fell 1.5% and the NASDAQ 100 plumged 2% amid a massive selloff in chip stocks.

The Asian markets bounced back sharply on Thursday morning as investors in Japan and Korea reassessed chip stocks after a sharp sell-off over the last two sessions. The Korean KOSPI soared over 5% after Samsung Electronics posted record earnings. Japan’s Nikkei also surged over 1,000 points or 1.5%.

Amid mixed global market cues, GIFT NIFTY futures were trading 0.3% lower, indicating a negative opening for the NIFTY50 on Thursday.

NIFTY 50

The NIFTY50 staged a powerful recovery on Wednesday, surging more than 250 points. The index reclaimed its 20 and 50 EMA levels on both hourly and daily charts, marking a shift in short-term sentiment as bulls regain momentum.

After opening above the psychological 24,000 mark, the index maintained those gains, signaling sustained buying strength at elevated levels.

While the 24,000 zone will now act as the immediate support, the 24,350–24,500 territory remains a near-term resistance hurdle for bulls.

NIFTY50 open interest

After Wednesday’s sharp recovery, the open interest data for the coming weekly expiry on August 4 indicates 24,500 as the next resistance level with the highest open interest. On the downside, 24,000 puts hold the highest open interest, indicating a strong resistance for NIFTY50.