Stock market on June 18: Here are 5 things to know before opening bell

The Indian equity benchmarks are set to open on a subdued note as indicated by NIFTY futures traded at Gift City in Ahmedabad. NIFTY futures at Gift City also known as Gift NIFTY futures fell 0.12% or 31 points to 24,832 amid sluggish global cues. In yesterday's session, the SENSEX and NIFTY ended lower on account of profit booking amid escalating geopolitical tensions between Iran and Israel.

Global market setup

Most of the Asian markets were trading on a weak note as oil climbed to five-month high after concerns rose that an escalation of tensions between Iran and Israel would trigger a more direct US involvement.

Japan's Nikkei rose 0.51%, China's Shanghai Composite index fell 0.1%, Hong Kong's Hang Seng fell 1% and Australia's S&P/ASX 200 declined 0.1%.

Overnight, US markets ended lower on Tuesday under the weight of another jump for the price of oil. It was a return to form for financial markets after Wall Street’s worries about Israel’s fighting with Iran had seemed to calm a bit on Monday.

The S&P 500 fell 0.8% following signals that the Israel-Iran conflict may be worsening and that one of the U.S. economy’s main engines is weakening. The swing sent Wall Street’s main measure of health nearly back to where it started the week.

The Dow Jones Industrial Average dropped 299 points, or 0.7%, and the Nasdaq composite fell 0.9%, according to a report by news agency AP.

Israel-Iran conflict update

The conflict between Iran and Israel escalated further on Wednesday, with both countries launching fresh missile attacks amid intensifying hostilities now entering their sixth day. Despite mounting international concerns, the latest exchange unfolded just hours after former US President Donald Trump issued a stark warning to Iran, demanding its "unconditional surrender."

According to the Israeli military, Iran launched two separate barge of missiles targeting Israeli territory early Wednesday morning. Multiple explosions were reported over Tel Aviv as air raid sirens sounded across central Israel, according to news agency Reuters.

In a series of posts on Truth Social late Tuesday, Trump indicated growing frustration over the situation and suggested a more aggressive posture toward Tehran. While stopping short of threatening direct military action, he issued a thinly veiled warning to Iran’s top leadership.

“We know exactly where the so-called ‘Supreme Leader’ is hiding,” Trump wrote, referring to Iran’s Ayatollah Ali Khamenei. “We are not going to take him out (kill!), at least not for now … Our patience is wearing thin.”

Just minutes later, Trump posted a single emphatic message: “UNCONDITIONAL SURRENDER!”

A senior White House official confirmed that Trump held a phone call with Israeli Prime Minister Benjamin Netanyahu on Tuesday to discuss the rapidly deteriorating situation. However, the official did not elaborate on whether the U.S. planned to increase its military or diplomatic involvement in the region.

Crude price check

Oil prices extended gains after surging to their highest levels in nearly five months on Tuesday, amid mounting speculation that the United States may be edging closer to direct involvement in the escalating conflict between Israel and Iran, Bloomberg reported.

West Texas Intermediate (WTI) crude rose as much as 1.1% in early Asian trade, briefly crossing the $75 per barrel mark. Meanwhile, Brent crude hovered near $76 a barrel by the end of Tuesday's session.

FII/DII activity

Foreign institutional investors (FIIs) bought shares worth ₹1,483 crore on Tuesday in cash segment while domestic institutional investors bought stocks worth ₹8,207 crore.

FIIs bought index futures worth ₹394 crore and bought index options worth ₹8,112.06.

NIFTY50 trade setup

NIFTY50 closed in red with minor losses of 0.3% as negative global cues continue to influence the markets. The benchmark index remained in a consolidation mode for over a month, trading within a narrow range of 24,800 to 25,200.

On the technical charts, the index managed to close above the 21 EMA level of 24,800, indicating that the outlook remains neutral. Experts believe the breakout from the range of 24,500 to 25,200 will define the next direction for the index.

On the options data front, 25,000 calls witnessed heavy open interest addition on Tuesday and hold the highest open interest for tomorrow's expiry too. On the downside, 24,500 puts hold the highest open interest, indicating a strong support for the current expiry at these levels.