⚠️ Disclaimer:
This post reflects my personal opinions and analysis based on publicly available information. I am not a SEBI-registered advisor. Please consult a certified financial expert before making any investment decisions.
1. Global News
Global markets are buoyed by positive developments in U.S.-China trade negotiations. Both nations reported “substantial progress” over the weekend, leading to a risk-on sentiment across global equities.
2. U.S. Market
On MONDAY, May 12, U.S. Future, open higher:
- Dow Jones: +1.2% up
- Nasdaq Composite: +0.36%
- S&P500 : +1.33%
3. GIFT Nifty
GIFT Nifty futures are trading approximately 2% higher, suggesting a positive opening for Indian markets.
4. Asian Markets
Asian equities are trading higher, reflecting the upbeat global sentiment:
The rally is attributed to the progress in U.S.-China trade talks.
5. Domestic News Impact
Ceasefire Agreement Between India and Pakistan: On May 10, India and Pakistan agreed to a “full and immediate ceasefire” following escalated tensions in the Kashmir region. The agreement, announced by former U.S. President Donald Trump, has been welcomed by the international community as a step towards regional stability. However, reports indicate that the ceasefire has been fragile, with instances of violations reported shortly after the agreement.
Later, in the evening, we have CPI inflation data.
6. FII/DII Activity
On May 9:
- Foreign Institutional Investors (FIIs): Net sellers of ₹3,798.71 crore
- Domestic Institutional Investors (DIIs): Net buyers of ₹7,277.74 crore
This indicates strong domestic support amid foreign outflows.
7. Open Interest (OI)
The highest open interest on the call side is at the 24,400 and 24,500 strike prices. this option chain will change as we will see huge gap up. It will be interesting to see how the new open interest will develop today.
8. Put-Call Ratio (PCR)
The Nifty PCR stands at 0.73, suggesting a bearish sentiment in the options market.
9. Technical Outlook
The positive news from both global and domestic fronts has resulted in a strong gap-up opening. Technically, Nifty is once again in the value area of last week. If it stays above this level, it’s a good sign for further upside in Nifty.
Banknifty key level are marked. last week value may be resistance zone.
Conclusion
Global cues are positive, with progress in U.S.-China trade talks boosting sentiment. However, domestic geopolitical tensions there. the good news is FII are continuously buying, will they change their game as china-us trade deal improved? Investors should monitor key support and resistance levels and stay updated on geopolitical developments.
