Indian stock market indices, the Nifty 50 and the Sensex, are expected to start on a somewhat subdued note today, August 12, 2025, mirroring mixed signals from global markets.

Global Cues and US-China Tariff Truce Extension

Asian markets are generally positive following the extension of the tariff truce between the United States and China for another 90 days. Japan's Nikkei 225 index has notably rallied, hitting a record high. However, Wall Street ended lower on Monday as investors remained cautious about US-China trade developments.

President Trump has signed an order extending the tariff truce with China until November 10. China has also confirmed that it will maintain tariffs on American products at 10% and address non-tariff barriers affecting US goods. This extension has eased immediate concerns about escalating tensions that previously unsettled global markets.

Monday's Market Performance

On Monday, August 11, the Indian equity market closed with strong gains, driven by short-covering and broad-based buying. The Sensex rallied 746.29 points, or 0.93%, to close at 80,604.08, with 26 of its constituents ending higher. The Nifty 50 settled 221.75 points, or 0.91%, higher at 24,585.05.

Key Levels to Watch

Shrikant Chouhan, Head of Equity Research at Kotak Securities, believes that 80,400 and 80,200 will act as key support zones for the Sensex for day traders. A pullback move is likely to continue until 81,000 - 81,200 if it stays above these levels. However, a break below 80,200 could turn sentiment negative, potentially prompting traders to exit long positions.

According to Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking, Nifty open interest data indicates the highest call writing at the 24,600 strike, with the highest put OI concentrated at 24,500 and 24,400. This suggests resistance near 24,600, but traders anticipate potential upside with a sustained close above this level.

Osho Krishnan, Senior Analyst - Technical & Derivative Research at Angel One, noted that the Nifty's recent bullish gap, with a three-day low of 24,350, is a significant support level. Resistance on higher levels remains around 24,650 - 24,750.

Factors Influencing the Market

Several factors are expected to influence the Indian stock market today:

• US-China Trade Relations: The extension of the tariff truce is likely to have a positive impact on market sentiment, reducing fears of escalating trade tensions.
• Technical Levels: The key support and resistance levels for both Sensex and Nifty 50 will play a crucial role in determining market direction.
• Sector Trends: Momentum in heavyweight stocks and banking names will be key to sustaining gains. Sectors like IT and pharma could also see selective buying.
• Earnings Announcements: Several prominent companies are scheduled to announce their quarterly results today, which could influence individual stock performance.
• FII/DII Activity: Foreign Institutional Investors (FIIs) were net sellers on August 11, while Domestic Institutional Investors (DIIs) were net buyers. Continued support from DIIs could help offset any negative impact from FII selling.
• US-Russia Trade Talks: The market is expecting that the US-Russia trade talks would rather help in stopping the war and therefore help India purchase oil.

Overall Market Sentiment

Despite the positive close on Monday, caution remains a key theme for investors, who are closely monitoring global and domestic factors. The extension of the US-China tariff truce has provided some relief, but concerns about the impact of US tariffs on India persist.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Investors should consult with their financial advisors before making any investment decisions.