Trade setup for June 25: Can NIFTY50 sustain the gains above 24,000 on Thursday?

The global market cues indicate a positive start for Indian markets on Thursday, with Brent crude oil prices below the $73 per barrel mark, and the external cues alleviate tensions on rupee depreciation. GIFT NIFTY futures were trading over 100 points higher on Thursday at 8:00 am, indicating a gap-up opening for the NIFTY50.

Brent crude prices have effectively retraced to their pre-conflict territory. This retreat follows the restoration of maritime traffic as buyers encounter increased supply offers from the Middle East and other major exporting regions.

Wall Street delivered a mixed performance on Wednesday ahead of Micron's earnings. While the Dow Jones managed a 0.3% gain, the S&P 500 and tech-heavy NASDAQ declined, closing 0.3% and 0.4% lower, respectively. However, the chipmaker reported blockbuster results, including a 346% surge in revenue and a multifold increase in profits, fueling a 2% jump in NASDAQ futures on Thursday morning.

The robust earnings from Micron bolstered the sentiment around Asian technology shares. Japan's Nikkei surged over 3.4%, while South Korea's KOSPI staged a powerful recovery, soaring 5% to reclaim most of the losses from Tuesday's meltdown.

NIFTY50 chart

The NIFTY50 bounced back from lower levels on Wednesday, climbing nearly 200 points. As highlighted previously, a closing above 24,000 would keep the bullish momentum intact. The index also managed to defend the 20-EMA levels of 23,780, as it remains crucial support. Going forward, a weekly close above the previous swing high of 24,189 would lead the rally towards the 24,500 levels.

NIFTY50 open interest analysis

The 30th June expiry data reveals a heavy change in open interest data after Wednesday’s bounce back in the NIFTY50. The open interest on the 24,100 and 24,200 calls witnessed strong unwinding, indicating a positive outlook for NIFTY50 above 24,000 till 24,200. On the downside, the 24,000 to 23,700 puts witnessed a strong open interest addition, indicating a strong support zone for NIFTY50.