Indian Markets Eye Muted Open Amid Mixed Global Cues, Middle East Tensions
GG News Bureau
Mumbai, 17th June: Indian benchmark indices are anticipated to open on a muted note on Tuesday, influenced by a blend of feeble global cues, persistent foreign institutional investor (FII) selling, and escalating tensions in the Middle East. Traders are likely to remain cautious following US President Donald Trump’s call for everyone to evacuate Tehran. However, signs of easing US inflation could provide some underlying support.
Nifty futures on the NSE International Exchange were trading 31.70 points (0.13 percent) lower at 24,964.50, suggesting a subdued start for the domestic market. Asian stocks presented a mixed picture on Tuesday, with Japan’s Nikkei and South Korea’s KOSPI gaining over half a percent, while Shanghai and Hong Kong experienced dips.
Investors will be closely watching the Bank of Japan’s interest rate decision and US May retail sales data, both due later on Monday, noted Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services. “We expect the market to remain watchful, tracking global cues and macro-economic data,” he added.
US stocks closed higher on Monday, as investor concerns about higher energy prices potentially fueling inflation eased. The Dow Jones Industrial Average rose 317.30 points (0.75 percent) to 42,515.09; the S&P 500 gained 56.14 points (0.94 percent) to 6,033.11, and the Nasdaq Composite jumped 294.39 points (1.52 percent) to 19,701.21. The dollar firmed slightly on Tuesday, though most currencies held tight ranges as ongoing Middle East tensions and anticipated central bank decisions kept investors wary. Against a basket of currencies, the dollar marginally strengthened to 98.23.
In commodities, the risks of prolonged unrest in the Middle East and potential disruptions to oil supply pushed prices higher. Brent crude futures were up 0.34 percent at $73.47 a barrel, while West Texas Intermediate crude rose 0.43 percent to $72.09. Gold prices also saw an uptick, fetching $3,393.05 per ounce, up 0.3 percent for the day.
Ajit Mishra, SVP of Research at Religare Broking, described the market’s resilience amid geopolitical tensions as encouraging but advised caution. “However, participants should remain cautious and not get carried away by a single-day rebound,” he warned. Mishra recommended a stock-specific trading approach, favoring “relatively less volatile counters” given the mixed trends across sectors.
Provisional data from NSE indicates that Foreign Portfolio Investors (FPIs) were net sellers of domestic stocks, offloading ₹2,539.42 crore on Monday. Conversely, Domestic Institutional Investors (DIIs) remained net buyers, infusing ₹5,780.96 crore into Indian equities.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, observed that Nifty50 formed a long bull candle on the daily chart, surpassing the recent opening downside gap at 24825 levels. “The underlying trend continues to be positive. Nifty is expected to move towards the next hurdle of 25100-25200 levels in the next few sessions. Immediate support is placed at 24800,” he stated.
Shrikant Chouhan, Head Equity Research at Kotak Securities, believes that the 20-day Simple Moving Average (SMA) or the 24,850/81,500 and 24,775/81,200 levels are key support zones for day traders. Conversely, 25,100/82,300 and 25,150/82,500 would act as crucial resistance levels for bulls. He suggested “buying on intraday dips and selling on rallies” as the ideal strategy. Bajaj Broking noted that Bajaj Finance formed a bull candle, filling its Friday’s gap down area and 20-day Exponential Moving Average (EMA). “In the coming session a move above 56,000 levels will open further upside towards 56600 and 57,000 levels in the coming sessions. On the downside only a breach below 55,000 levels will open downside towards the key support area of 54,500-55,000,” it stated.
