Pre-Market: Nifty Likely to Open Higher; GIFT Nifty Up 35 Points

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Monday, August 10, supported by gains in Asian markets and a positive signal from GIFT Nifty. At around 7:30 AM, GIFT Nifty was trading near 24,677, indicating a premium of 35 points over the previous close of Nifty futures and pointing to a positive start. However, elevated crude oil prices and uncertainty over a possible U.S.-Iran agreement could limit the upside.

Asian markets advanced in early trade, while U.S. equity futures were mixed as concerns increased over the prospects of a near-term agreement to reopen the Strait of Hormuz. S&P 500 futures declined around 0.2 per cent, while Nasdaq-100 futures gained 0.1 per cent. Dow Jones futures fell 99 points, or 0.2 per cent.

Crude oil prices rose on Monday as uncertainty persisted over the reopening of the Strait of Hormuz. Iran said discussions with Oman on alternative shipping routes were in the final stages but maintained that the U.S. must meet additional conditions before the key waterway can reopen. Brent crude futures gained 91 cents, or 1.09 per cent, to USD 84.46 a barrel, while WTI crude futures rose 61 cents, or 0.78 per cent, to USD 78.79 a barrel. Both benchmarks had fallen more than 7 per cent last week on expectations of a possible agreement that could facilitate the reopening of the strategic oil route, which previously handled around one-fifth of global oil supplies.

Uncertainty surrounding the U.S.-Iran conflict remains a key market trigger. Iranian Foreign Minister Abbas Araqchi said the agreement with Oman was in its final stages but reiterated that the Strait of Hormuz would reopen only after Washington meets additional conditions, including compensation for attacks on Iran. He also said Tehran and Washington are not currently negotiating and that Iran would not initiate talks while the U.S. continues to violate an interim agreement signed in June. Meanwhile, Iran-aligned Houthi forces claimed to have targeted Saudi Aramco's Jazan refinery, while UAE-based ADNOC said 15 of its vessels had come under attack while transiting the Strait of Hormuz since the conflict began.

The Q1FY27 earnings season will remain in focus, with more than 150 companies scheduled to announce their Quarterly Results on Thursday, August 6. Vodafone Idea, Bharat Forge, Info Edge India, Hindustan Copper, KEC International, Ideaforge Technology and PC Jeweller are among the companies reporting results.

Gold prices remained broadly steady after posting their strongest weekly gain since January. Gold was trading near USD 4,345 an ounce in early Asian trade after rising more than 7 per cent last week, supported by an unexpected contraction in the U.S. labour market that eased concerns over a potential interest-rate hike. Gold has remained above the USD 4,000-an-ounce mark in recent weeks, although prices are still nearly 20 per cent below their levels before the Iran war began in late February.

For the August 11 expiry, the Nifty 50 Put-Call Ratio stood at 0.73. On the Put side, notable open interest additions were seen at the 23,800 and 24,500 strikes, while the 24,700 strike witnessed the biggest unwinding. Significant Put open interest was concentrated at 24,000. On the Call side, the 24,600 strike saw notable open interest addition and remained the key concentration zone.

Technically, immediate resistance for the Nifty 50 is placed at 24,616, 24,641 and 24,682, while support is seen at 24,534, 24,508 and 24,467. The index could remain range-bound below the 24,700-24,800 zone, with stronger support around 24,400-24,300. A sustained breakout above 24,800 could push the index towards 25,000-25,200.

Among stocks, Titan Company will be in focus after its Q1 consolidated profit jumped 62.9 per cent year-on-year to Rs 1,777 crore, while revenue increased 29.3 per cent to Rs 21,356 crore. Power Finance Corporation reported a 2.1 per cent rise in consolidated profit to Rs 7,012 crore despite a 3.3 per cent decline in net interest income to Rs 10,696.4 crore. Oil India reported a 253 per cent surge in standalone profit to Rs 2,870.2 crore, with revenue rising 58.8 per cent to Rs 7,958.1 crore.

Kaynes Technology India reported 40.5 per cent year-on-year revenue growth to Rs 9,460.2 crore, although profit declined 24.4 per cent to Rs 56.4 crore. Ola Electric Mobility narrowed its Q1 loss to Rs 336 crore from Rs 428 crore, while revenue fell 45 per cent to Rs 455 crore. Entero Healthcare Solutions reported a 37.3 per cent increase in profit to Rs 38.2 crore and a 38.2 per cent rise in revenue to Rs 1,940.5 crore.

Akums Drugs and Pharmaceuticals reported a 56.1 per cent increase in profit to Rs 101 crore, while revenue rose 13.9 per cent to Rs 1,166.6 crore. Nitin Spinners posted an 83.6 per cent jump in profit to Rs 75.3 crore, with revenue increasing 10.3 per cent to Rs 875 crore. Anant Raj reported an 18.9 per cent rise in consolidated profit to Rs 149.6 crore, while revenue grew 6.6 per cent to Rs 631.4 crore. Ambika Cotton Mills reported a 61.4 per cent increase in profit to Rs 25.7 crore and a 34.3 per cent rise in revenue to Rs 257.9 crore.

Signature Global and its subsidiary entered into collaboration agreements for land parcels measuring 11.887 acres and 13.73 acres in Sohna, Gurugram, with a potential developable area of around 2.18 million square feet. Emcure Pharmaceuticals said the U.S. FDA issued an Establishment Inspection Report for its Sanand formulations facility, classifying the inspection as Voluntary Action Indicated and closing the inspection.

NMDC fixed lump ore prices at Rs 5,250 per tonne and fines at Rs 4,500 per tonne, effective August 8. RITES signed a memorandum of understanding with Hindustan Petroleum Corporation to provide consultancy services for Railway siding infrastructure across HPCL facilities. Vedanta Aluminium Metal said its subsidiary BALCO was declared the preferred bidder for the Karlapat Bauxite Block, which has estimated mineral reserves of around 248 million tonnes.

LIC India and Bandhan Bank are under the F&O ban for Monday, August 10.

In institutional activity, Foreign Institutional Investors were net buyers on August 6, purchasing equities worth Rs 480.24 crore. Domestic Institutional Investors also remained buyers, acquiring shares worth Rs 235.56 crore during the session.

Indian equities ended lower on Friday, August 7, amid rising crude oil prices and renewed concerns over the Strait of Hormuz and the prospects of a Middle East peace deal. The Nifty 50 declined 0.32 per cent to close at 24,557, while the Sensex fell 0.59 per cent to 78,491.

Overall, domestic markets may get a positive opening cue from GIFT Nifty and Asian equities, but gains could remain capped by crude oil prices, geopolitical uncertainty and developments around the Strait of Hormuz. Investors are likely to track Q1FY27 earnings, institutional flows, gold prices and key technical levels for further direction.

Disclaimer: The article is for informational purposes only and not investment advice.