Session: May 12 Markets Summary – Geopolitical Relief Rally
The big jump in Indian stocks after the ceasefire between India and Pakistan, helped by good news from around the world like an upgrade to India’s sovereign rating and progress in trade talks between the U.S. and China, shows how quickly foreign events can change how investors feel.
- Strong Opening surge Sensex went up almost 1,800 points and Nifty 50 went up about 600 points, giving them both a 2.4% rally. Nifty Midcap 100 and Smallcap 100 both went up about 3%, showing that broader markets performed better.
- Drivers of Opinion Indian and Pakistan’s ceasefire reduced the risk in the area. Expectations of a trade deal between the US and China boosted world markets and made the dollar stronger. Following India’s national rating upgrade by Morningstar DBRS, investors became more confident.
- Performance in Sector Aside from Pharma, which went down because the U.S. wants to lower drug prices, which hurt India’s generic exports, all other sectors went up. Adani Enterprises, Trent, Jio Financial, Adani Ports, Shriram Finance top gains. Laggards are Sun Pharma and Cipla.
- Organizational Effort After 16 buying sessions, FIIs turned net sellers on May 9; but, as geopolitical stability improves, they could start buying once more. DIIs also booked gains, which reflected cautious optimism in face of the surge.
- Outlook on Technical and Derivatives Key Resistance: 24,250 to 24,500 zone. Key Support: 23,800; greater support is seen at 23,600–23,500. Options: Strong call writing at 24,500; place support strong at 24,000. With a dip in the Put-Call Ratio (PCR) to 0.73 traders should exercise more caution. Six: Trading Strategy Steer clear of aggressive index bets; concentrate on stock-specific prospects. Control volatility with hedged techniques—that is, protective puts and spreads. For directional clarity, closely track geopolitics and trade signals around the world.
Also read: Trump Claims Credit as India and Pakistan Suddenly Call for Ceasefire.
More read: Sunny Deol Breaks Silence on Salman Khan’s Shocking Industry Statement.