Stock Market Outlook Today, June 12: Will Sensex, Nifty End The Week On A Strong Note? GIFT Nifty Signals Positive Start

Stock Market Outlook Today, June 12: Dalal Street might get some relief on Friday after a few volatile sessions. Early signals pointed to a green opening for the market in the morning, as global equities saw a solid rally and crude oil prices declined. Investors hope the benchmark indices can shrug off Thursday’s weakness and end the week on some momentum. This is the last trading session before the weekend, and market players are expected to be cautious on global developments before taking fresh positions.

GIFT Nifty was up 75.50 points, or 0.32 per cent to trade at 23,478 at 7:47 AM IST. If the trend continues, then the Nifty 50 may open 70-90 points higher, while the Sensex may start the day around 250-300 points higher.

Thursday’s session closed out in the red

The positive start to the day follows a flat session on Thursday when profit-booking and risk aversion took centre stage with continued global uncertainties. The BSE Sensex fell by 150.63 points to 73,832.55, and the Nifty 50 by 53.35 points to 23,161.60. The drop was not severe, but the market was unable to find direction for a major part of the session.

Markets rise globally

Sentiment is getting a giant boost from overseas markets.

Wall Street closed solidly higher overnight on signs of easing tensions between the United States and Iran. The sentiment gain drove broad buying, particularly in tech stocks.

The Dow Jones gained almost 930 points, the S&P 500 rose 1.75%, and the Nasdaq climbed 2.54%. The positive sentiment continued to rub off on Asian markets in Friday morning trading with the Japanese Nikkei, the South Korean Kospi, the Australian ASX 200 and Hong Kong’s Hang Seng all heading north, driving regional markets.

Oil prices fall, easing fears for consumers

Some good news also came out of crude oil, which has been a focus of many investor worries in the past few days.

At 8.00 am IST, Brent crude was down 1.16 per cent at $89.33 a barrel, and WTI crude was trading 1.04 per cent lower at $86.80.

Lower oil prices are usually good news for India. Lower crude prices could help rein in inflation, ease pressure on fuel prices and cool concerns about the country’s import bill.

Nifty levels to watch out today

According to Bajaj Broking Research, Nifty is still trading in a wider range of 23,000 to 23,550 and is waiting for a fresh trigger to break out decisively. 

The index tried to bounce back on Thursday but failed to sustain gains at higher levels, the broking said. 

Traders are eyeing the 23,000-23,200 zone as an important support level. The nearest resistance is higher at 23,327. A move above this level can help Nifty target the 23,500-23,550 zone in the near term. 

Bank Nifty view for today

The Bank Nifty’s resilience in the face of sporadic bouts of volatility appears to be a permanent feature. The underlying trend is still believed to be bullish by the experts as long as it stays above major support. But the 55,500-55,600 band is still a big problem.

A break above here could pave the way for 56,500 in the coming weeks. On the downside, the market is finding support at 54,000-53,800.

What investors should look for today

Apart from the action in the domestic market, investors will be eyeing global cues, crude oil prices, activity of foreign institutional investors and developments in West Asia, dealers said.

The GIFT Nifty was showing a positive start, and the global markets were supporting the trend. Traders today will be watching out whether the market can make use of early optimism and end the week on a positive note.

(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)

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