Trade setup for June 19: Can NIFTY50 give a weekly close above 24,000 on Friday?

Indian benchmark indices are expected to open in the red, as IT stocks may remain a key drag on the index. Despite the positive global market cues, the GIFT NIFTY futures traded 200 points lower on Friday at 7:45 am, indicating a sharp gap-down opening for the NIFTY50.

Brent crude oil prices are headed for a sharp weekly drop after shipping traffic through the Strait of Hormuz inches towards normalcy. The US Central Command also announced that it is lifting all the restrictions on traffic to and from Iranian ports and coastal waters.

The US stock markets bounced back sharply on Thursday. The tech-heavy NASDAQ index jumped 1.9%, while the S&P 500 soared 1% and the Dow Jones rose 0.1%. Shares of Intel soared 10% after President Trump said that Intel and Apple would partner to design and manufacture chips in the US.

Following the overnight gains in the US tech stocks, the Asian markets hit fresh record highs on Friday morning. Korea’s KOSPI index jumped 2%, while Japan’s Nikkei rose 0.2%.

NIFTY50

The NIFTY50 extended its rally, finishing above the 24,100 mark for the first time in 28 sessions. Bullish momentum remains intact as the index successfully crossed the trendline hurdle near 24,150. A sustained close above 24,100 on Friday would also mark the first close above the weekly 20-day EMA since March 2, potentially triggering a fresh leg of the rally.

NIFTY50 open interest analysis

The 24,000 puts hold the highest open interest, indicating strong support on the downside. On the flipside, the 24,500 calls hold the highest open interest, indicating a strong resistance for NIFTY50’s coming weekly expiry.