Trade setup for July 7: Can NIFTY50 cross 24,500 on expiry day?

Indian benchmark indices are expected to open in the green on Tuesday, suggesting sustained bullish momentum in the indices. The global market cues remain mixed as US markets closed in green, while the Asian markets plunged in deep red on Tuesday.

The US markets remained upbeat on Monday as tech stocks led the rally. The NASDAQ 100 index jumped over 1% on improved sentiment around chip stocks after Samsung’s robust sales update. The Dow Jones surged over 155 points or 0.29% and hit a new record high, while the S&P 500 closed 0.7% higher.

Asian markets opened in the red, except for Hong Kong, as Asian investors remained cautious about the euphoric rally in the chip stocks in Japan and Korea. The Japanese Nikkei fell over 1% while the Korean KOSPI plunged over 5%.

Crude oil futures remained under pressure as rising supply continued to weigh on the prices. The Brent crude oil prices hovered near $72 per barrel. Meanwhile, oil giant Saudi Aramco cut the price of the Asian light crude by $11 per barrel, reflecting softer market conditions.

Despite the mixed global market cues, GIFT NIFTY futures jumped over 53 points at 8:00 am, indicating a positive start for the NIFTY50 on Tuesday.

NIFTY50

The NIFTY50 rallied for the fourth consecutive session on Monday, rising nearly 160 points. As highlighted earlier, the index crossed the 200-EMA level of 24,430. The index made a swing high of 24,458 and closed slightly lower at 23,430. The momentum would revive further if the index gives a sustained close above 24,450. Alternatively, the index could consolidate near the current levels.

NIFTY 50 open interest analysis

The open interest data for today’s expiry suggest that 24,000 to 24,400 puts hold strong open interest concentration, suggesting downside protection at the respective levels. The 24,500 calls hold the highest open interest, suggesting strong resistance at the respective levels.