Indian Markets Anticipate Muted Opening on June 12 Amidst Global Caution

Thursday, June 12th: Indian benchmark indices, the Sensex and Nifty, are expected to open on a muted note today, June 12, with GIFT Nifty trends suggesting a slightly lower start near the 25,200 mark. This cautious sentiment stems from mixed signals across Asia-Pacific markets and ongoing developments in global trade.

Recap of June 11 session:

On June 11, both the Sensex and Nifty managed marginal gains. Support from the IT and oil & gas sectors helped to counterbalance pressure on FMCG and PSU bank stocks. However, profit booking at higher levels limited any significant upward momentum, resulting in a largely range-bound session, with broader markets initially outperforming but eventually dipping into the red.

Global Uncertainty Keeps Traders Guarded

Market sentiment was negatively affected by geopolitical updates. A statement from former US President Donald Trump claiming a trade deal with China was finalised but also hinting that he will continue the steep 55 per cent tariffs on Chinese imports kept Asian markets mixed and investors wary.

FIIs Continue to Sell, DIIs Provide Support

• Foreign Institutional Investors (FIIs) continued their selling trend on June 11, offloading equities worth ₹446.31 crore.
• In contrast, Domestic Institutional Investors (DIIs) maintained their buying streak, with net inflows of ₹1,584.87 crore.
• Year-to-date in 2025, FIIs have cumulatively sold over ₹1.21 lakh crore, a significant amount that has largely been absorbed by DIIs, who have invested over ₹3.06 lakh crore in the Indian market.

Technical Outlook: Key Nifty and Bank Nifty Levels

Nifty 50:

• Support Zone: Remains strong above 24,800
• Resistance Levels: Watch for a breakout above 25,220 to signal bullish continuation
• Upside Target: If momentum picks up, Nifty may move towards 25,350–25,400
• Market Sentiment: Positive bias continues, with dips likely to attract buying interest

Bank Nifty:

• Support: 55,900 remains a crucial level
• Resistance: 57,120 breakout could lead to a move towards 57,500–57,700
• Despite short-term fatigue, the index held above the psychological 56,000 mark, suggesting strong buying on dips

Volatility and Derivatives Indicators

The India VIX fell 2.48% to 13.66, signalling low volatility and easing investor anxiety. The Nifty Put-Call Ratio (PCR) remained steady at 0.97, indicating a neutral-to-positive market sentiment, as traders maintained a greater number of put positions than call positions.

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations