Trade setup for June 10: Can NIFTY50 sustain the gains on Wednesday?

GIFT NIFTY futures jumped 40 points on Wednesday morning, indicating a positive start for NIFTY50. The Indian markets shrugged off the worries from the Middle East as the US and Iran engaged in Military strikes.

Brent crude oil prices remained steady at $93 per barrel after bouncing back from $89 per barrel amid tensions between the US and Iran. President Trump claimed that Iran attacked its naval helicopter, to which the US retaliated with strikes on Iran.

US markets ended mixed on Tuesday amid rising geopolitical tensions in the Middle East. The Dow Jones closed 0.1% higher, while the S&P 500 and NASDAQ lost 0.2% and 1%, respectively. The NASDAQ witnessed high volatility, falling over 4% intraday on Tuesday.

Following the volatility in US markets and escalated tensions in the Middle East, the Asian markets opened in the red on Wednesday morning. The Japanese, Korean, and Hong Kong indices fell by 1%, 0.8%, and 3.2%, respectively.

NIFTY50 chart

NIFTY50 closed in the green with 0.5% gains on Tuesday, partially recouping losses on Monday. The index closed above the crucial trendline support of 23,150, negating the previous day’s bearish setup. Bullish momentum will be seen only if the index manages to close above the 23,500-23,600 zone. Till then, the index will continue to remain in a consolidation mode with trendline support of 23,150.

NIFTY50 OI analysis

The initial buildup for the 16 June expiry indicates a 23,200 as a strong support level, with the highest open interest on the put side of the strike price. On the flipside, 23,500 calls hold the highest open interest, indicating a strong resistance for NIFTY50.

.