Trade setup for June 24: Can NIFTY50 bounce back to 24,000 on Wednesday?

Brent crude prices have effectively retraced to their pre-conflict territory, stabilising near $76 per barrel. This retreat follows the restoration of maritime traffic as oil tankers resume transit through the Strait of Hormuz.

Wall Street saw a broad-based decline on Tuesday, due to the ongoing sell-off in technology shares. While the Dow Jones remained nearly unchanged with a marginal 0.09% dip, the S&P 500 tumbled 1.4%. The tech-focused NASDAQ 100 index bore the brunt of the weakness, plunging 3% as heavyweights like Micron and Sandisk both plummeted 13%, while NVIDIA and Alphabet shed 3% and 1%, respectively.

Asian benchmarks delivered a mixed performance on Wednesday morning following Tuesday's sharp retreat. Japan's Nikkei extended its losing streak, sliding 0.3% as hawkish cues from the Bank of Japan fueled interest rate concerns. Conversely, South Korea's KOSPI staged a robust recovery, surging 278 points or 3.1% to reclaim the majority of the previous session's losses.

The GIFT NIFTY rose 55 points on Wednesday at 7:40 am, indicating a positive start for NIFTY50. However, overnight rout in the US tech stocks may continue to drive sentiment on Wednesday.

NIFTY50 chart

The NIFTY50 fell nearly 280 points on Tuesday, reversing most of the gains made in the previous week. However, the index managed to defend the 50 EMA support of 23,825 levels. Moreover, the bullish crossover setup remains intact if the index manages to close above the previous day's swing high levels of 24,100. On the flipside, the 20 EMA level of 23,750 remains a crucial support, below which the index could fill the gap till the 23,615 levels.

NIFTY50 open interest

The initial buildup for the 30th June expiry suggests that 24,000 is a crucial level with the highest open interest on the call and put side. However, the 24,000, 24100 and 24,200 calls witnessed heavy open interest concentration, suggesting limited upside till 24,200.