Trade setup for June 22: Can NIFTY50 bounce back on Monday? Check details

Indian benchmark indices are expected to open in green on Monday amid positive global market cues.Positive global market cues and steady crude oil prices to remain key sentiment drivers.

Brent crude prices traded around the $79 per barrel mark on Monday morning following the first session of US-Iran talks in Switzerland. Sentiment remained positive as both nations committed to the initial MoU framework. Furthermore, the lifting of the blockade ensures that the Strait of Hormuz remains accessible for maritime traffic.

Wall Street extended its rally on Friday, fueled by a surge in technology shares. The tech-focused NASDAQ index climbed approximately 2%, while the S&P 500 advanced by 1% and the Dow Jones added 0.1%.

Following the global momentum, Asian benchmarks hit fresh record highs on Monday morning. Japan’s Nikkei surged nearly 2%, while Korea’s KOSPI index jumped over 1%, continuing its unprecedented record-breaking run.

GIFT NIFTY futures traded 44 points higher on Monday morning, suggesting a positive opening for NIFTY50.

NIFTY50

The NIFTY50 retraced some of its recent advance on Friday, halting its five-session rally. The index remained below the weekly 20-EMA, suggesting a period of consolidation within the 23,800 to 24,500 range. Technically, the 23,800 zone persists as a vital floor, while the trendline resistance at 24,100 remains the key hurdle for bulls.

NIFTY OI analysis

The open interest data for Tuesday’s expiry suggests, that 24,500 calls hold the highest open interest, indicating a strong resistance. On the flipside, 24,000 puts hold the highest open interest, suggesting strong support for NIFTY50.