Trade setup for Nov 3: NIFTY50 reclaimed 50 EMA, can it sustain above it on expiry day? GIFT NIFTY indicates positive start

Crude oil prices witnessed one of the sharpest declines in over five months after President Trump favoured a peaceful resolution of the conflict between the US and Iran. Brent crude oil price plunged nearly 10% to hit an intraday low of $103 per barrel on Monday and currently trades near $104 per barrel on Tuesday morning.

The US stock markets mostly closed in the red, paring all the opening gains on Monday. The S&P 500 fell 0.5%, and the NASDAQ 100 plunged 1.1%, amid a selloff in the technology and energy stocks. Meanwhile, the Dow Jones closed over 200 points higher as investors chased defensive bets in finance, consumer and retail stocks.

Asian stock markets followed the cues from the overnight losses in the US tech stocks. The Korean KOSPI plunged 2.4%, Taiwan’s weighted average index dropped 500 points, and Japan's Nikkei fell over 200 points or 0.3% on Tuesday morning.

Owing to the sharp plunge in crude oil prices, GIFT NIFTY futures surged over 110 points on Tuesday morning, indicating a gap-up open for NIFTY50 on Tuesday.

NIFTY50 chart check

NIFTY50 extended its winning streak from Friday and closed over 378 points higher on Monday, starting the November month on a positive note. On the hourly charts, the RSI now stands at 74, indicating some cooling off at higher levels after three days of consecutive gains.

However, on the daily charts, the index rose above the 50 EMA for the first time since August 2026, indicating strong reversal momentum for the medium term. Going forward, 23,170 could act as immediate support for the downside. On the upside, the 24,500-24,600 zone remains a major resistance zone for the index to cross.

NIFTY50 open interest data

The open interest data ahead of today’s weekly expiry indicates strong OI concentration below the 23,300 level, indicating limited downside for the index. The 23,000 puts held the highest open interest, and the 23,200 and 23,300 puts witnessed strong open interest addition, indicating strong support levels at regular intervals. Meanwhile, on the upside, the nearest hurdle remains at 23,500, with the highest open interest on the calls side.