The stock market is expected to open flat on Thursday, June 12, as investors look for more clarity on the trade deal between the United States and China. This comes after Sensex and Nifty, ended slightly higher on Wednesday, even as trading remained within a narrow range for most of the day.
As of 8:34 am, Gift Nifty futures were trading at 25,236.5, suggesting that the Nifty 50 index will open close to Wednesday’s closing level of 25,141.4.
On Wednesday, both Sensex and Nifty posted gains, driven by strong buying in IT stocks. However, profit booking and the absence of strong news kept the overall movement limited. The market’s upward momentum was also supported by continued interest from domestic investors.
MARKET SUPPORT AND RESISTANCE LEVELS
According to VLA Ambala, Co-Founder of Stock Market Today, the Nifty is expected to find support between 25,020 and 24,970.
She said that resistance is likely between 25,220 and 25,300 in the intraday session. Ambala also said that Bank Nifty could test the range between 56,100 and 55,550 over the next 2 to 5 trading days.
Nifty has now risen for six days in a row, reaching its highest level in eight months. This positive trend has been helped by the Reserve Bank of India’s recent policy support, along with progress in global trade talks. The central bank’s decision to maintain a supportive stance has boosted confidence in the market.
INTERNATIONAL CUES AFFECT SENTIMENT
While domestic markets have stayed firm, sentiment in Asian markets was weak. This was in line with overnight losses seen in the US stock markets. Global investors are still unsure about the exact terms of the trade deal between the US and China.
US President Donald Trump said that a basic agreement had been reached on tariff rates, which could help restart trade talks with China. Although this news brought some relief, the lack of detailed information left many investors cautious.
Trump also announced a partial evacuation of US staff from the Middle East, calling the area “a dangerous place.” He repeated that the US would not allow Iran to develop nuclear weapons. These comments added to the uncertainty in global markets.
In India, domestic institutional investors continued their buying streak for the 17th straight session on Wednesday. However, foreign portfolio investors turned sellers after three days of buying Indian stocks. These shifts in investor activity are being closely watched as they have a direct impact on market direction.
Investors are also waiting for the release of the consumer inflation data for May, which is expected after market hours.