Trade setup for Sep 23: Can NIFTY50 defend 23,300 on Wednesday? Here is what traders need to know

GIFT NIFTY futures indicate another muted start for NIFTY50 on Wednesday amid mixed global market cues. Crude oil prices logged the sixth consecutive session of decline. Meanwhile, the technology stocks continue to log strong gains as uncertainty in the Middle East curbs.

Though US markets closed on a mixed note on Tuesday, the tech-heavy NASDAQ 100 index closed at fresh record peaks amid strong buying in the AI hyperscalers and chip stocks. The Dow Jones ended lower amid some pressure in the Industrial stocks.

The Asian markets opened in the green across the board, except for China. The Korean KOSPI surged over 1.3%, and Hong Kong’s Hang Seng rose 0.5%, while the Chinese markets traded lower ahead of the Xi-Trump meeting in the US today.

The crude oil prices recorded the sixth consecutive session of decline on Tuesday as uncertainty in the Middle East eased. Brent crude oil prices fell below $100 per barrel mark as the US and Iran moved ahead in the diplomatic efforts to restore peace in the region, alleviating supply concerns from the Strait of Hormuz.

NIFTY50 chart summary

The NIFTY50 index closed in red, losing 85 points on the weekly expiry day. The index failed to sustain above the hourly 20 and 50 EMA for the second session, indicating selling pressure at higher levels.

On the daily charts, the index posted a bearish engulfing candlestick pattern, suggesting bears' grip on the index at higher levels. The broad range of trade was between 23,300 and 23,500 on the immediate basis. While the medium term support stands at 23,100, beyond which the weakness could intensify further.

NIFTY50 open interest summary

The initial open interest buildup for the coming monthly expiry on September 29 indicates strong support at the 23,000 level and near-term resistance at the 23,500 level. The index is expected to remain in the broader range of 23,000 to 24,000 levels, according to the open interest data.

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