Pre-Market Update: GIFT Nifty Signals Gap-Down Start on July 8 Amid U.S.-Iran Tensions

The Indian stock market is expected to open lower on Wednesday, July 8, as weak global cues and rising geopolitical tensions in the Middle East weigh on investor sentiment. Escalating conflict between the U.S. and Iran has pushed crude oil prices higher, while weakness in global equities is likely to keep domestic markets under pressure.

At 7:27 AM, GIFT Nifty was trading near 24,215, around 168 points below the previous close of Nifty futures, indicating a gap-down opening for the benchmark indices. Asian markets traded mixed, while Wall Street ended lower overnight following a sharp sell-off in Semiconductor stocks.

Investor sentiment remains cautious after the U.S. launched a series of military strikes on Iran and reinstated sanctions by revoking a license that had allowed Tehran to sell oil. The move came after Iran reportedly attacked three oil tankers in the Strait of Hormuz, raising concerns over global energy supplies and increasing geopolitical risks.

Crude oil prices extended gains as fears of supply disruptions intensified. Brent crude rose 1.83 per cent to USD 75.52 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 1.97 per cent to USD 71.83 per barrel. Higher crude prices remain a key concern for India, which imports the majority of its oil requirements.

Gold prices declined to their lowest level in nearly a week as a stronger U.S. dollar reduced demand for the precious metal. Spot gold slipped 0.1 per cent to USD 4,100.32 per ounce, while U.S. gold futures for August delivery fell 1.1 per cent to USD 4,112.50 per ounce. Spot silver also eased 0.3 per cent to USD 59.82 per ounce.

The U.S. dollar continued to trade near its strongest level this week. The dollar index, which measures the greenback against a basket of six major currencies, stood at 101.18, its highest level since July 2.

Derivatives data indicates a cautious outlook ahead of the weekly expiry. The Put-Call Ratio (PCR) stands at 0.90. The 24,500 strike recorded the highest open interest as well as the largest addition in both call and put options, making it a key level for the current series.

The Nifty 50 is expected to find immediate support in the 24,300-24,200 zone, with 24,000 acting as the next important support if selling pressure intensifies. On the upside, the 24,500-24,600 range is expected to remain a strong resistance zone. A sustained move above 24,500 could improve market sentiment, while trading below this level may keep the index in a consolidation phase. Based on pivot levels, support is seen at 24,357, 24,314 and 24,244, while resistance is placed at 24,496, 24,539 and 24,608.

Stock-specific activity is likely to remain in focus. Rashtriya Chemicals and Fertilizers Ltd approved raising up to Rs 1,500 crore through a Further Public Offering (FPO), subject to shareholder and regulatory approvals. Cochin Shipyard Ltd's government Offer for Sale (OFS) was subscribed 3.52 times on the first day, reflecting healthy investor demand. Uno Minda Ltd announced a Rs 320 crore investment to set up a greenfield passenger vehicle seating systems plant in Chhatrapati Sambhajinagar, Maharashtra.

Poonawalla Fincorp Ltd approved the issuance of Tier II non-convertible debentures worth up to Rs 200 crore through private placement. Ceigall India Ltd received appointed dates for three highway projects worth Rs 4,050 crore, enabling Construction to commence. HCL Technologies Ltd said HCLSoftware completed the acquisition of Jaspersoft, strengthening its analytics and artificial intelligence capabilities through Actian.

ideaForge Technology Ltd opened its Qualified Institutional Placement (QIP) to raise up to Rs 500 crore. Advait Energy Transitions Ltd secured a turnkey contract worth Rs 51.62 crore from DGVCL for power distribution infrastructure. EMS Ltd emerged as the lowest bidder for a Delhi Jal Board sewerage project valued at around Rs 158.29 crore. Silver Touch Technologies Ltd won an order from RITES to develop PARAKH, an artificial intelligence-based DPR appraisal platform, while Epigral Ltd incorporated a wholly owned subsidiary, Epigral Advanced Materials Ltd., to expand its chemicals business.

There are no stocks under the F&O ban list for the July 8 trading session.

On July 7, Foreign Institutional Investors (FIIs) remained net buyers, purchasing equities worth Rs 393.19 crore. Domestic Institutional Investors (DIIs) were net sellers, offloading shares worth Rs 383.43 crore.

The Indian stock market ended lower on Tuesday, snapping a four-session winning streak as higher crude oil prices and geopolitical uncertainty prompted profit booking. The Sensex declined 104.35 points, or 0.13 per cent, to close at 78,180.72, while the Nifty 50 fell 31.65 points, or 0.13 per cent, to settle at 24,398.70.

U.S. equity markets also finished lower on Tuesday, led by weakness in semiconductor stocks. The Dow Jones Industrial Average slipped 0.25 per cent, while the S&P 500 declined 0.45 per cent. The Nasdaq underperformed, falling 1.16 per cent.

Among notable stocks, Nvidia gained 0.71 per cent, whereas AMD fell 6.51 per cent. Intel declined 9.66 per cent, Micron Technology lost 4.71 per cent and Sandisk dropped 7.3 per cent. Meta Platforms advanced 2.55 per cent, while Tesla fell 4.02 per cent.

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