Trade setup for March 9: Can NIFTY50 hold 23,700 on Monday after big gap down opening?

The morning cues for Monday are showing signs of extreme weakness for the Indian markets as the global markets traded in a sea of red amid a deepening crisis in West Asia. The benchmark indices across Asia fell up to 7% across the board. Japan’s Nikkei index fell more than 2000 points, and Korean indices dropped nearly 8% on Monday morning. Additionally, the US stock market futures also dropped over 2% amid the escalating crisis.

The GIFT NIFTY futures traded 800 points lower near the 23,700 levels, indicating a sharp gap-down opening on Monday morning. The crude oil prices skyrocketed 20% to trade above $100 per barrel as key Middle Eastern oil-producing nations curtail oil production owing to the deepening crisis. Additionally, the transit activity in the Strait of Hormuz is at a standstill as exporters sound cautious about the safety of the ships.

NIFTY50 charts

On the Technical front, the 23,700 now remains a crucial support, considering the big gap-down opening in the markets. The NIFTY50 will test the April 2025 breakout levels on Monday; further, a weekly closing above these levels could provide some cushion and support in the near term.

On the options data front, the 24,000 puts held the highest open interest, indicating a strong support for tomorrow’s expiry. While the 25,000 calls held the highest open interest, indicating a strong resistance on the upside.

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Long buildup: -

Short buildup: ICICI Bank, IndiGo

Top traded futures contracts: Reliance, ICICI Bank

Top traded options contracts: Infosys 1400 CE

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