Pre-Market Update: Nifty 50 Like to See Cautious Opening on June 10 Amid Escalating U.S.-Iran Conflict; NLC India, Welspun Corp, HDFC Bank Among Stocks to Watch

Pre-Market Update at 7:32 AM: The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a weak note on Wednesday, June 10, amid subdued global cues and rising geopolitical tensions in the Middle East. Escalating conflict between the U.S. and Iran has dampened investor sentiment globally, while weakness across Asian markets and losses on Wall Street are expected to weigh on domestic equities.

Gift Nifty was trading near the 23,252 mark, around 68 points above the previous close of Nifty futures, indicating a negative start for the Indian market.

Among the key global triggers, tensions between the U.S. and Iran remain in focus. Iran's Revolutionary Guards said they launched drone attacks on the U.S. Fifth Fleet stationed in Bahrain in response to recent American strikes on targets in southern Iran. Meanwhile, the U.S. Central Command stated that its forces carried out strikes on Iranian air Defence systems, ground control facilities and surveillance radar installations near the Strait of Hormuz after Iran allegedly downed a U.S. military helicopter.

Japanese government bond yields moved higher amid growing inflation concerns. The benchmark 10-year yield rose 3 basis points to 2.695 per cent, while the 20-year and 30-year yields climbed to 3.590 per cent and 3.890 per cent, respectively. Shorter-duration bond yields also edged higher, reflecting expectations of persistent inflationary pressures.

In the commodities market, gold prices declined as fears of prolonged inflation and the possibility of further interest rate hikes weighed on sentiment. Spot gold fell 1.4 per cent to USD 4,203.20 per ounce, while U.S. gold futures for August delivery dropped 1.4 per cent to USD 4,227 per ounce. Spot silver also slipped 1.4 per cent to USD 64.48 per ounce.

Crude oil prices advanced following fresh U.S. military strikes on Iran and another significant drawdown in U.S. crude inventories. Brent crude futures rose 0.9 per cent to USD 92.29 per barrel, while West Texas Intermediate (WTI) crude gained 0.8 per cent to USD 88.97 per barrel.

The U.S. dollar remained largely stable against major currencies. The dollar index inched up 0.01 per cent to 100.02. The euro slipped to USD 1.1537, the British pound eased to USD 1.337, while the Japanese yen weakened marginally to 160.38 per dollar.

From a derivatives perspective, the Put-Call Ratio (PCR) for the June series stood at 0.82. On the put side, significant open interest concentration was visible at the 23,200 strike. On the call side, notable additions were seen at the 23,200 strike, while the highest open interest among the nearest out-of-the-money strikes was concentrated at 23,500 and 24,000.

Technically, 23,280 remains a crucial level for Nifty 50. A sustained close above this mark could strengthen bullish momentum and open the door for a move towards 23,382, which coincides with the 8-day EMA. Higher resistance levels are placed at 23,561, representing the 20-day DMA, and 23,699, the 50-day DMA. On the downside, the 23,000-23,100 zone remains a key support area. A break below this range could trigger fresh selling pressure.

Stock-specific action is expected to remain active. Welspun Corp will be in focus after its subsidiary, Welspun Mauritius Holdings, divested a 4.5 per cent stake in East Pipes Integrated Company, Saudi Arabia, for SAR 283.46 million, equivalent to approximately USD 75.59 million. The group will continue to hold a 22 per cent stake in the company through its U.S. subsidiary.

Quality Power Electrical Equipments signed a term sheet to acquire 100 per cent equity of Winwin Speciality Insulators, strengthening its position in the high-voltage insulator segment. Hinduja Global Solutions launched Project GANGA, which aims to connect more than 20 lakh homes with high-speed broadband across Uttar Pradesh over the next two to three years.

NLC India will remain in focus after the government exercised the oversubscription option for an additional 1 per cent stake sale through the Offer for Sale route, increasing the total offer size to 3 per cent. Dredging Corporation of India appointed JaSMEet Singh Bindra as Additional Director and Chairman with effect from June 9.

Dixon Technologies (India) announced a joint venture with Gemtek Technology Co., under which Dixon will hold a 60 per cent stake. The venture will manufacture optical transceivers, SFPs, BOSA and other telecom products. HDFC Bank also remains on investors' radar after receiving legal relief from the Bombay High Court, which dismissed an interim plea in a Rs 1,000 crore defamation suit filed by the Lilavati Kirtilal Mehta Medical Trust.

In the derivatives segment, Amber Enterprises India and Kaynes Technologies remain under the F&O ban list for June 10.

Institutional activity remained mixed on June 9. Foreign Institutional Investors (FIIs) were net sellers of equities worth Rs 4,566.03 crore, while Domestic Institutional Investors (DIIs) purchased shares worth Rs 6,159.48 crore.

Despite recent geopolitical concerns, Indian equities ended higher on Tuesday, snapping a two-session losing streak. The Sensex gained 394.50 points, or 0.54 per cent, to close at 73,918.76, while the Nifty 50 rose 119.10 points, or 0.52 per cent, to settle at 23,242.10.

However, U.S. markets ended mostly lower overnight as escalating tensions between the U.S. and Iran raised concerns over the prospects of a broader Middle East conflict. The Dow Jones Industrial Average gained 86.10 points, or 0.17 per cent, to close at 50,872.11. In contrast, the S&P 500 fell 19.08 points, or 0.26 per cent, to 7,386.65, while the Nasdaq Composite dropped 250.84 points, or 0.97 per cent, to 25,678.82.

Among major technology stocks, Nvidia declined 0.22 per cent, AMD fell 3.02 per cent, Intel lost 2.13 per cent, Microsoft dropped 2.02 per cent, Apple plunged 3.64 per cent, and Tesla slipped 3.00 per cent.

Overall, geopolitical developments in the Middle East, crude oil prices, global bond yields and institutional flows are likely to remain the key drivers for Indian equities in Wednesday's trading session.

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

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