Trade setup for June 17: Can NIFTY50 sustain above 24,000 on Wednesday?

Indian benchmark indices are expected to open on a flat note on Wednesday amid mixed global market cues. The Indian markets have staged a sharp bounce back from lower levels, but continue to face resistance at higher levels. On the other hand, the FIIs have reduced their intensity in selling as they sold close to ₹750 crore on Tuesday.

Brent crude oil prices extended the fall for the fourth consecutive session on Tuesday as the geopolitical tensions in the Middle East were almost erased with the US and Iran agreeing on a peace deal. Brent crude oil prices hovered around $80 per barrel on Wednesday morning as they erased the majority of the gains made due to the war.

The US markets closed mixed, with the Dow Jones as the sole gainer, up +1% among benchmark indices. The S&P 500 and NASDAQ plunged 0.5% and 1% on Tuesday, ahead of the Federal Reserve’s policy outcome, which is scheduled to be announced on Wednesday.

Asian markets opened mixed on Wednesday morning, with Korean indices trading flat with minor losses. On the other hand, Japan’s Nikkei index soared over 450 points, shrugging off the worries of higher interest rates in the economy.

Owing to mixed global market cues, GIFT NIFTY futures traded flat with 20 to 30 points gains on Wednesday morning, suggesting a flat start to NIFTY50.

NIFTY50 chart check

The NIFTY50 extended its rally for the third straight day, despite experiencing significant intraday swings. An inside candle emerged on the daily chart, suggesting a temporary standoff between bulls and bears regarding the next move. While the index encountered stiff resistance and selling pressure at the psychological 24,000 mark, the 50-day EMA near 23,780 is expected to serve as a pivotal support zone in the coming sessions.

NIFTY50 OI analysis

The initial buildup for the June 23 expiry suggests a tug of war between calls and puts as 24,000 calls and puts hold the highest open interest. Wednesday’s activity in the open interest data will help in assessing the direction better for coming days.