Pre-market action: Here's the trade setup for today's session

By

Akash Podishetti

, ETMarkets.comLast Updated: May 12, 2026, 06:42:00 AM IST

Synopsis

Indian equities saw a nearly 1.5% decline on Monday, mirroring weak global sentiment following the US-Iran peace talks failure. Analysts anticipate continued caution due to escalating geopolitical tensions, with stock and sector-specific movements expected alongside the Q4FY26 earnings season's final phase. The India VIX surged, indicating increased market nervousness.

The Nifty declined nearly 1.5% on Monday, tracking weak global cues after the US and Iran failed to reach a peace agreement. Analysts say Indian equities are expected to remain cautious in the near term amid escalating geopolitical tensions, with stock- and sector-specific action likely to continue alongside the final leg of the Q4FY26 earnings season.

STATE OF THE MARKETS

• Tech View: On the upside, a move above 24,000 could trigger short covering and lead to a pullback towards 24,200 levels. The momentum indicators have turned negative as the MACD has generated a fresh bearish crossover, while the RSI has slipped below the 50 mark, reflecting weakening strength. On the volatility front, India VIX jumped nearly 10% to close around 18.50 levels, and any sustained move above the 20 mark could further increase nervousness among market participants.
• India VIX: India VIX, which is a measure of the fear in the markets, nearly 10% to settle at 18.51 levels.

Stocks in F&O ban today

SAIL

Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

FII/DII action

Foreign portfolio investors net bought shares worth Rs 8,437 crore on Monday. DIIs, meanwhile, were net buyers at Rs 5,939 crore.

Rupee

The Indian rupee endured its sharpest drop in more than a month on Monday to end at it weakest closing level on record as a run-up in crude oil prices battered the currency after US President Donald Trump rejected Iran's response to a US peace proposal.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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