Trade setup for Nov 12: Can NIFTY50 defend the gains above 25,200 on Thursday?

The benchmark indices are expected to open on a muted note after a relentless rally since the start of the month. The GIFT NIFTY futures traded 12 points higher, indicating a muted start for NIFTY50 on Thursday. Meanwhile, steady crude oil prices and positive global market cues could influence Thursday’s session.

Crude oil prices hovered around flat lines on Thursday morning after closing with marginal gains on Wednesday. Brent crude traded near $93 per barrel after reports said Saudi Arabia’s oil production reached pre-war levels in October.

The US stock market futures plunged on Thursday morning after a strong recovery in Wednesday’s regular trading session. The NASDAQ 100 futures tumbled 1% after reports indicated that Nvidia’s board is preparing to oust Jensen Huang on allegations of an affair with a Chinese spy.

Asian markets opened in the green, following overnight gains in US tech stocks. The Korean KOSPI, Japan’s Nikkei and Taiwan’s weighted index surged up to 1% on Thursday morning. While the Hang Seng index plunged 1.2% at the same time.

NIFTY50 chart check

NIFTY50 extended its rally for the second consecutive day on Wednesday after a small pause on Sunday. The index touched 10-month high levels during the intraday session and closed over 210 points higher. The index trended downwards in the intraday session, but the last hour of buying again pulled the index higher from the hourly 20 EMA levels. Indicating adequate buying strength at lower levels.

On the long-term daily charts, the next support remains at 24,370 levels, which is the gap up from the opening level of November 5. An hourly close below those levels would lead NIFTY50 to fill the gap towards 24,000 levels.

NIFTY50 open interest summary

The open interest data for the coming weekly expiry indicates a broad range of trading between 24,500 and 25,500. The 24,500 puts held the highest open interest, indicating strong support for the index. On the flip side, 25,500 calls held the highest open interest, indicating strong resistance on the upside.