CUT a thin slice from bottom of 1 medium watermelon so it will sit flat, being careful not to cut through rind to melon.
USING a pencil and a 1 1/2- inch (4 cm) wide cardboard guide, draw scallop design about 1/3 of the way down from the top of the melon. On top third, mark handle.
USING a sharp paring knife carefully cut watermelon to create scallops and handle; remove top section.
SCOOP melon into balls or wedges, reserving 6 to 8 cups (1.5 to 2 L) for fruit basket; leave shell 1-inch (2.5 cm) thick. Wrap watermelon basket in plastic wrap; refrigerate until ready to serve. Fill watermelon basket with mixed fresh fruit just before serving.