At 7:00 am on Monday, GIFT NIFTY futures surged more than 260 points, suggesting a significant gap-up opening for Indian markets. On Monday, the pressure on Indian markets will lessen as crude oil prices, Treasury yields, and the US dollar index decline.
Following a peace agreement between Iran and the US, Brent crude oil prices fell more than 4% on Monday morning. The price of Brent crude oil is currently at $85 per barrel, virtually at three-month lows, practically undoing all of the war’s gains.
After geopolitical tensions in the Middle East finally subsided and Iran and the US reached a peace agreement that allowed the Strait of Hormuz to reopen, US stock market futures increased by more than 1% on Monday morning.
All of the Asian markets began higher on Monday morning, with the Japanese and Korean indexes rising more than 5%. Prospects for Asian tech companies, especially in Japan and Korea, have once again improved due to the reopening of the Strait of Hormuz and a significant decline in US Treasury yields.
The NIFTY50 index successfully defended itself at Friday’s finish after making a strong comeback from lower levels. For the past week, the index has increased by more than 1%, ending the negative closing trend. After ten trading sessions, the index closed above the 20 EMA on the daily charts. Nonetheless, the index has spent 11 trading days below the 50 EMA. The index would regain bullish momentum if it closed above the 50 EMA for two days in a row. For NIFTY50, the long-term support level is at 23,070, while the psychological resistance level is 24,000.
Following significant OI concentration on the lower levels of the NIFTY50, the open interest data for tomorrow’s weekly expiry became optimistic on Friday. good open interest was added to the 23,200 to 23,500 puts, with the 23,400 put having the largest open interest, suggesting good support at lower levels up to 23,200. Conversely, 24,000 calls have the most open interest, suggesting that NIFTY50 is facing significant difficulty.
