Trade setup for Sep 22: Can NIFTY50 bounce above 23,500 on Tuesday?

The GIFT NIFTY futures surged over 60 points on Tuesday morning, indicating a positive start for NIFTY50. The pullback in crude oil prices and globa bond yields alleviate investor fears.

The US stock markets extended the rally from the previous week as drop in yields abated investor worries on rising debt costs. The tech-heavy NASDAQ 100 index surged the most over 2%, followed by the S&P 500 at 1.49%, while the Dow Jones rose over 360 points.

Brent crude oil futures dropped below $100 per barrel on Tuesday, as investors reassessed the risks as Oman brokers diplomatic efforts to mediate between the US and Iran. The crude oil prices have seen sharp drop since last week’s high levels at $110 per barrel.

Meanwhile, taking cues from the drop in US Treasury yields and crude oil price, boosted the investor sentiment in Asian markets on Tuesday morning. The Korean KOSPI surged the most at 1.7% after a strong rally in the tech stocks in the US. While the Hong Kong’s Hang Seng and Taiwanese indices surged as much as 1% on Tuesday morning.

NIFTY50 chart summary

The NIFTY50 index surged over 67 points on Monday, extending its pullback from the previous week. On the hourly chart, the index closed above the 20 and 50 EMA for the first time since 26 Aug 2026. The reversal from lower levels also showed strength and points toward a positive crossover on the hourly chart.

On the daily charts, the index has nearly recouped the loss of the previous expiry session on 15th September. Going forward the near-term support level stands at 23,100 and the closest resistance at 23,600.

NIFTY50 open interest summary

The open interest data for today’s expiry indicates strong support at 23,400 puts held the highest open interest on the downside. On the flipside, 23,500 calls held the highest open interest on the upside, indicating near-term resistance. Breakout from the either side of 23,300 to 23,500 range would help decide the direction for NIFTY50 for Tuesday’s session.

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