Trade setup for June 12: Can NIFTY50 breach 23,500 on Friday? Check details

Brent crude oil prices remained steady below $90 per barrel after falling over 6% on Thursday. President Trump said a peace agreement could be reached as early as this weekend.

The US markets bounced back on Thursday after a major de-escalation in the US-Iran war. The Dow Jones rallied 929 points or 1.8%, followed by the S&P500, which rose 1.7%. The NASDAQ jumped the most with 2.5% gains on Thursday amid high optimism around the SpaceX listing on Friday. The company successfully raised $75 billion in an IPO.

Asian markets rejoiced at the cooling of tensions in the Middle East and the overnight gains in the US markets. The Korean KOSPI rose over 6% on Friday morning, the Nikkei jumped 3.2%, and the Hang Seng rallied 1.2%.

GIFT NIFTY futures jumped over 280 points on Friday at 7:45 am on buoyant global market cues, indicating a sharp gap-up opening for the NIFTY50. The US 10Y yields slumped to 4.47%, and the dollar index also fell briefly below 100, suggesting easing pressure on the Indian rupee.

NIFTY50

NIFTY50 closed 0.2% lower on Thursday after facing selling pressure at higher levels. The index has now remained under the 20 EMA level for 10 consecutive sessions, indicating a neutral-to-bearish setup for Friday. Even on the hourly charts, the index failed to close above the 20 and 50 EMA levels but bounced back from the 23,070 support level, forming a double-bottom candlestick pattern. On the daily charts, the 20 EMA level continues to remain a major resistance for the NIFTY50, and 23,070 remains a crucial support

NIFTY50 OI analysis

The open interest data for the coming weekly expiry on June 16 indicates 23,000 as a crucial support level, with the highest open interest on the put side. On the flipside, the 23,500 calls hold the highest open interest, indicating a strong resistance for NIFTY50. Meanwhile, 22,900, 23,000, and 23,100 puts saw strong open interest addition, indicating a limited downside risk below 23,100.