Trade setup for May 13: Can NIFTY50 bounce back from current levels? Check details

Indian benchmark indices are expected to open higher on Wednesday morning amid mixed global cues. The key focus remains on jewellery stocks again as the government increased the import duty on gold from 5% to 10% in order to curb the import of gold and save on foreign exchange.

The global cues remain mixed as the US markets closed in red on Tuesday, as the headline inflation came in higher than expected at 3.8%. Elevated crude oil prices kept the indices in check at record high levels.

The Asian markets opened in green as investors reassessed the risks from the US-Iran war. The Korean markets bounced back 1% from the previous day losses as investors selectively bought tech stocks. Meanwhile, Japanese indices traded flat-to-negative on Wednesday morning with some profit booking at record levels.

The GIFT NIFTY futures traded 40 points higher on Wednesday morning despite mixed global cues.

NIFTY50 chart check

The NIFTY50 index gave a clear breakdown on the daily charts by closing below 23,800. The index opened nearly 100 points lower and fell further in the closing hours on the weekly expiry day. The index now aims to fill the gap of 8 April, where the index opened over 700 points higher. The gap fill suggests the index could find support near 23,123 in the near term.

NIFTY50 OI analysis

The initial buildup for the coming weekly expiry suggests strong support at 23,000 as the puts for the strike price hold the highest open interest. On the other hand, 23,500 calls hold the highest open interest, indicating a strong resistance for the near term.