Trade setup for June 8: Can NIFTY50 defend 23,000 support on Monday?

GIFT NIFTY futures were trading over 300 points lower on Monday at 7:40 am, indicating a gap-down opening for the NIFTY50. Elevated crude oil prices and weak sentiment across tech stocks could put pressure on market sentiment today

Brent crude oil prices jumped 4% on Monday morning towards $95 per barrel after Iran fired missiles towards Israel. Tensions flared up between the two rivals amid a fragile ceasefire between Israel and Lebanon. Besides this, the OPEC+ approved another increase in the July output at 1,85,000 barrels per day despite the tensions and supply risks in the Middle East.

The US markets tanked on Friday, led by the rout in tech stocks. The NASDAQ plunged 4.1% as investors preferred to book profits in chip manufacturing and AI stocks after Broadcom's earnings guidance soured investor sentiments. The S&P 500 tumbled 2.7%, and the Dow Jones fell over 1.3% on Friday.

The Asian markets are deep in the red on Monday morning after a sharp selloff in tech stocks in the US on Friday. The Korean indices halted trading after falling over 8% on Monday morning, triggering circuit breakers for the third time this year. The chip heavyweights Samsung and SK Hynix plunged over 10% amid the rout. Following weak cues, the Japanese index fell over 4.5%, and the Hong Kong market dropped over 1.5%.

NIFTY50 chart check

Last week, the NIFTY50 closed 0.7% lower, falling for the second week in a row. The India VIX stands at 15, indicating range-bound volatility in the index. Consequently, we have witnessed a broad range for the NIFTY50 since April 2026. The trendline resistance of lower highs stands at 23,950, indicating a medium-term resistance and trendline support of 23,150 in the medium term. The index has failed to close above the 50 EMA for nearly a month, indicating strong selling momentum at higher levels.

NIFTY50 open interest analysis

23,000 puts hold the highest open interest for NIFTY50 on Monday, indicating a strong support for the index. On the flipside, 23,500 calls hold the highest open interest, indicating a strong resistance for NIFTY50. Alongside this, 23,500 to 23,900 call strikes hold strong open interest concentration, indicating upside remains capped at regular intervals.

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