Pre-Market Update: GIFT Nifty Signals Flat Start for Nifty 50 on July 16; SBI, Ather Energy, Adani Power in Focus

Indian benchmark indices Sensex and Nifty 50 are expected to open on a flat to slightly positive note on Thursday, July 16, tracking mixed global cues. Market sentiment remains cautious as investors monitor the ongoing U.S.-Iran conflict, rising crude oil prices, global developments and the upcoming Q1 earnings season.

Asian markets traded lower, while U.S. markets ended higher overnight after softer inflation data boosted investor sentiment. At 7:31 AM, GIFT Nifty was trading around 24,076, indicating a premium of nearly 35 points over the previous Nifty futures close and suggesting a steady opening for domestic equities.

Geopolitical tensions remained a key concern after the U.S. carried out fresh strikes targeting Iranian military assets allegedly linked to threats against commercial vessels passing through the Strait of Hormuz. Iran’s Revolutionary Guards warned that the Strait would remain closed until the U.S. stops its actions and indicated that other regional oil supply routes could also face risks.

The developments increased concerns over global crude oil supplies, keeping energy prices elevated. Crude oil prices advanced for the fourth consecutive session, with Brent crude futures rising 0.4 per cent to USD 85.28 per barrel, while WTI crude futures gained 0.5 per cent to USD 80.02 per barrel.

U.S. producer prices unexpectedly declined in June, marking the sharpest fall in 14 months. The Producer Price Index (PPI) for final demand dropped 0.3 per cent during the month, compared with economists’ expectations of no change. The softer inflation data strengthened expectations of a supportive interest rate environment.

The Bank of Korea raised its benchmark interest rate by 25 basis points to 2.75 per cent, marking its first rate hike in three-and-a-half years. The decision was unanimously approved by the central bank’s seven-member monetary policy board.

Gold prices remained largely stable as investors assessed easing inflation pressures. Spot gold traded nearly unchanged at USD 4,056.59 per ounce, while U.S. gold futures for August delivery increased 0.3 per cent to USD 4,062.50 per ounce. Silver prices declined 0.3 per cent to USD 57.61 per ounce.

For the July series expiry, the Nifty 50 Put-Call Ratio (PCR) stood at 0.77. On the Put side, major open interest addition was seen at the 23,000 strike, while significant open interest concentration remained at the 23,000 and 23,300 strikes. On the Call side, the highest open interest addition was recorded at the 24,200 strike, which also remained the key resistance zone.

The Nifty 50 closed at 24,078.50 on Wednesday and continued to trade in a consolidation phase. Immediate resistance levels are placed at 24,183, followed by 24,233 and 24,313. Key support levels are seen at 24,023, 23,974 and 23,893.

The 24,000-23,950 zone remains crucial as it aligns with the 20-day and 50-day exponential moving averages (EMAs). Holding above this range could support an upmove towards 24,300 and further towards 24,500-24,600 levels. A decisive break below this zone may lead to deeper consolidation.

State Bank of India (SBI) will remain in focus after Sunil Ramgopal Agrawal joined as Chief Financial Officer (Designate) from July 15. He will assume charge as CFO from August 1, strengthening the bank’s senior management team.

Ather Energy approved the allotment of 76.19 lakh convertible warrants worth Rs 960 crore to Hero MotoCorp. The company also launched its Qualified Institutional Placement (QIP), fixed the floor price at Rs 1,169.70 per share and approved preferential issues to India-Japan Fund, Hero MotoCorp and promoters at a premium to the floor price.

Adani Power signed a 25-year power supply agreement with Maharashtra State Electricity Distribution Company (MSEDCL) to supply 1,600 MW from a new 2x800 MW ultra-supercritical thermal power project. The project has also secured coal linkage under the SHAKTI policy.

India Pesticides received Technical Equivalence (TEQ) approval in the European Union for one of its fungicide products, a development expected to strengthen exports and expand its presence in the European market.

HDFC Bank is in focus after the Reserve Bank of India approved the appointment of Rajiv Kumar as Part-Time Chairman for three years from July 15. Keki Mistry will continue as Non-Executive, Non-Independent Director.

NTPC Green Energy’s subsidiary Ayana Renewable Power won a 50 MW wind power project in SECI’s 2,000 MW auction at a tariff of Rs 3.85 per kWh, expanding the company’s renewable energy portfolio.

Exide Industries invested an additional Rs 100 crore in subsidiary Exide Energy Solutions through a rights issue, taking the total investment to Rs 4,902.23 crore as it continues developing its lithium-ion cell manufacturing facility.

TVS Holdings’ subsidiary Home Credit India signed an agreement to acquire a 100 per cent stake in Varthana Finance for Rs 967 crore, strengthening its lending business.

Kaynes Technologies is under the F&O ban list for July 16.

Foreign Institutional Investors (FIIs) remained net sellers on July 15, selling equities worth Rs 735.83 crore. Domestic Institutional Investors (DIIs), however, continued buying and purchased shares worth Rs 704.93 crore during the session.

Indian equity markets ended marginally higher on Wednesday, supported by positive global cues. The Sensex gained 130.49 points, or 0.17 per cent, to close at 77,185.43, while the Nifty 50 advanced 26.45 points, or 0.11 per cent, to settle at 24,078.50.

U.S. markets ended higher on Wednesday after softer inflation data improved investor sentiment and reinforced expectations of a favourable interest rate outlook.

The Dow Jones Industrial Average gained 150.91 points, or 0.29 per cent, to close at 52,659.18. The S&P 500 advanced 28.83 points, or 0.38 per cent, to 7,572.42, while the Nasdaq Composite climbed 162.22 points, or 0.62 per cent, to finish at 26,269.23.

Among major technology stocks, Nvidia rose 0.33 per cent, Microsoft gained 2.78 per cent, Amazon advanced 3.02 per cent, Apple rallied 4.01 per cent and Meta Platforms surged 3.07 per cent. On the downside, AMD declined 3.46 per cent, Intel fell 4.43 per cent, Micron Technology dropped 8.02 per cent, Tesla slipped 0.43 per cent and SpaceX declined 0.60 per cent.

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