Indian Markets Rise After Ceasefire and Trade Talk Boost: Will Nifty Hit New Highs?
After positive developments between India-Pakistan and US-China, the Indian stock market showed strong recovery signs. Experts believe the Nifty index could now reach new highs, with strong support from both domestic and global trends.
04:26 PM May 12, 2025 IST
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Aakash Khuman
Indian Markets: On May 12, Indian stock markets opened on a positive note after two major global updates. First, India and Pakistan agreed to a ceasefire, easing geopolitical tensions. Second, US and China made progress in trade talks. This good news helped Nifty cross the 24,800 level, raising hopes of a fresh market rally.
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Nifty Attempts a Strong Breakout
Rohit Srivastava from Indiacharts says Nifty is trying to break out above 24,740. For the rally to continue, it needs to stay above 24,820. Nifty Bank also needs to close above 55,700 to aim for 57,000. He adds that easing tensions could shift investor focus back to global market risks like US bond yields and dollar strength. FIIs have already exited many short positions, so future gains will need strong support from domestic investors (DIIs).
Strong Support for Nifty at Lower Levels
Sudeep Shah from SBI Securities notes heavy put option writing around the 24,500–24,600 range. This shows strong support, and if it holds, Nifty could move up to 25,100–25,300. A drop in India VIX also signals lower market fear. For the Nifty Bank index, he sees support at 54,500–54,700 with potential to move towards 56,300.
Nifty May Re-Test December Highs
According to Ruchit Jain from Motilal Oswal, Nifty has broken out of its earlier consolidation zone. He believes it may test its December high of 24,850 and go up to 25,200. He also expects the IT sector to lead this rally since it was badly hit earlier during global trade tensions. The India VIX cooling down to 16 also suggests less fear in the market.
Summary of Key Levels to Watch:
- Nifty Support: 24,450–24,600
- Nifty Resistance: 25,100–25,300
- Nifty Bank Support: 54,500–54,700
- Nifty Bank Resistance: 56,000–56,300
- India VIX: Likely to stay around 16 (low volatility)
Also Read: Indian Stock Market Bounces Back After Border Tensions Cool Down
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