- GIFT NIFTY futures traded 40 points higher, indicating a positive opening for NIFTY50 on Monday.
- Crude oil prices remain elevated near $85 per barrel on Monday morning due to uncertainty over the US-Iran peace deal and the reopening of the Strait of Hormuz.
- NIFTY50 closed the previous week with marginal gains, forming a doji on weekly charts and a shooting star on daily charts, suggesting indecision and potential reversal.
- Open interest data shows strong resistance above 24,600, with 25,000 calls holding highest open interest, while 24,000 puts provide strong support.
- The US stock markets closed the previous week with strong gains, with the NASDAQ 100 soaring 5% and both the Dow Jones and S&P500 up over 3%, aided by a 23,000 increase in non-farm payrolls.
- Asian markets opened in the green on Monday, with Japanese indices soaring 2%, while Hong Kong and Korean indices traded with marginal gains.
NIFTY50 is set to test a consolidation breakout on Monday, buoyed by a positive opening indicated by GIFT NIFTY futures, which traded over 40 points higher. The index closed the previous week with marginal gains, forming a doji candlestick pattern that suggests indecision in market direction.13
The Asian markets opened positively, tracking gains in US tech stocks, with the Japanese indices leading the way with a 2% increase. The US stock markets also saw strong gains, with the NASDAQ 100 soaring as much as 5% and the Dow Jones and S&P500 rising over 3%. This positive sentiment is further supported by a 23,000 increase in non-farm payrolls, easing fears of a near-term rate hike by the Federal Reserve.56
However, the NIFTY50 faces potential resistance, with strong open interest buildup above 24,600 and major support at 24,000. The index's broader trend remains range-bound, with resistance at 24,775 and support at 24,400. A reversal could be confirmed if the index closes below the previous day’s low.
Meanwhile, crude oil prices hover near $85 per barrel, influenced by uncertainties surrounding the US-Iran peace deal and the reopening of the Strait of Hormuz.2
“Open interest data shows strong resistance above 24,600, with 25,000 calls holding the highest open interest, while 24,000 puts provide strong support. Technical patterns—a doji on weekly and a shooting star on daily—suggest indecision, with a reversal confirmed only if the index closes below the previous day's low.”
