Trade setup for May 15: Can NIFTY50 defend gains on Friday? Check details

Indian benchmark indices are set for a weekly loss y as GIFT NIFTY futures indicate a muted start for Indian markets on Friday. The global market cues remain mixed, with the US markets closing at record high levels and Asian markets opening in the red. On the other hand, elevated crude oil prices continue to worry domestic investors.

Brent crude oil prices stayed firm near the $105 per barrel level as attempts to end the US-Iran conflict stalled, leaving the Strait of Hormuz closed for nearly three months. Meanwhile, President Trump and Chinese President Xi discussed the efforts to keep the strait open and safeguard it.

US market performance remains upbeat, with tech stocks lifting the benchmark indices to fresh record highs. The S&P 500 hit a new milestone of 7,500, soaring 0.8%; the NASDAQ jumped 0.9%, and the Dow Jones crossed the 50,000 milestone again after February.

In sharp contrast to US markets, the Asian markets opened lower across the board as investors reassessed the risks from the overconcentration of semiconductors in Asian indices. Investors decided to take money off the table in Japan and Korea as their benchmark indices fell nearly 1.5% on Friday morning.

NIFTY50 chart check

The index gave a reversal from the lower levels, but failed to close above the crucial psychological resistance zone of 23,700. However, the index has managed to stage a reversal from levels with a closing above the previous day’s high. The daily charts now indicate a consolidation with a sideways trend unless the index breaks the support of 23,260 and the 23,900 resistance.

NIFTY50 OI analysis

The open interest data for the current weekly expiry suggest strong OI addition on the put side till 23,000, indicating downside protection for the index at 23,500, 23,400, 23,300 and 23,200 levels. On the flipside, 24,000 continues to hold the highest open interest on the upside, indicating strong resistance.