Pre-Market Update: Nifty 50 Likely to Open Gap Down on July 24; GIFT Nifty Signals 172-Point Drop Amid U.S.-Iran Tensions

Indian benchmark indices Sensex and Nifty 50 are expected to open sharply lower on Friday, July 24, tracking weak global cues, escalating geopolitical tensions in the Middle East and a sharp surge in crude oil prices. Rising bond yields, inflation concerns and disappointing earnings from Infosys have further dampened investor sentiment.

At around 7:25 AM, GIFT Nifty was trading near 23,690, down 172 points from the previous close of Nifty futures, indicating a significant gap-down opening for the domestic market.

Global risk sentiment remained under pressure after the U.S. military carried out another round of airstrikes on Iran, marking the 13th consecutive night of attacks. According to the U.S. Central Command, the latest operation lasted for more than two hours, keeping investors worried about a prolonged conflict and its impact on global energy supplies.

Economic data from the U.S. offered mixed signals. Initial jobless claims fell by 22,000 to a seasonally adjusted 187,000 for the week ended July 18, the lowest level since September 1969 and well below Reuters' estimate of 212,000 claims. While the data highlighted resilience in the labour market, it also reinforced expectations that interest rates could remain elevated for longer.

Trade developments also remained in focus after the U.S. announced fresh tariff rates of 10 per cent and 12.5 per cent on imports from several countries under Section 301. India was placed in the lower 10 per cent tariff bracket as the Office of the U.S. Trade Representative imposed duties on imports from 60 countries, citing concerns over goods allegedly produced using forced labour.

In Asia, Japan's core Consumer Price Index rose 1.6 per cent year-on-year in June, up from 1.4 per cent in May and in line with market expectations. However, inflation remained below the Bank of Japan's 2 per cent target for the fifth straight month.

Infosys remained in focus after reporting an 8.6 per cent sequential decline in net profit to Rs 7,769 crore for the first quarter of FY27, while revenue increased 3.9 per cent quarter-on-quarter to Rs 48,211 crore. Dollar revenue stood at USD 5.08 billion with constant currency revenue growth of 1 per cent. Large deal total contract value came in at USD 3.6 billion, while EBIT margin improved to 21.1 per cent from 21 per cent in the previous quarter. The company also lowered the upper end of its FY27 revenue growth guidance, triggering weakness in Infosys ADRs.

Crude oil prices remained elevated despite some profit booking on Friday. Brent crude slipped 0.72 per cent to USD 99.97 per barrel but was still on course for a weekly gain of 13.5 per cent. WTI crude declined 0.76 per cent to USD 91.49 per barrel and was set to advance 10.9 per cent for the week after both benchmarks surged sharply in the previous session.

Gold prices edged lower as persistent inflation concerns strengthened expectations of higher interest rates. Spot gold eased 0.1 per cent to USD 4,042.77 per ounce, while U.S. gold futures slipped 0.1 per cent to USD 4,045.60 per ounce. Spot silver also declined 0.2 per cent to USD 57.56 per ounce.

Derivative data continued to reflect a cautious undertone. The Put-Call Ratio stood at 0.68. On the put side, the highest open interest addition was recorded at the 23,850 strike, while the maximum put unwinding occurred at the 24,000 strike. Significant put open interest remained concentrated at the 23,800 and 23,500 strikes. On the call side, the highest open interest addition was seen at the 23,900 strike, while the maximum call open interest remained at the 24,000 strike.

Technically, Nifty 50 has immediate support at 23,819, followed by 23,776 and 23,706. A decisive break below the 23,800 level could intensify selling pressure towards the 23,650-23,600 zone, while a further decline may drag the index to 23,500. On the upside, immediate resistance is placed at 23,959, followed by 24,003 and 24,073. A sustained move above the 24,000-24,100 zone will be required to improve the near-term outlook.

Several stocks are expected to remain in focus during Friday's session. NTPC, Shriram Finance, Hindustan Zinc, Steel Authority of India (SAIL) and KFin Technologies will announce their June quarter earnings. IndiGo's parent InterGlobe Aviation reported a consolidated net loss of Rs 238 crore in the first quarter against a profit of Rs 2,176 crore a year ago, hurt by higher aviation fuel costs, a weaker rupee and disruptions in West Asia despite healthy revenue growth. Infosys will remain in focus after revising its FY27 revenue growth guidance to 1.5-3 per cent. Motilal Oswal Financial Services reported a 14.04 per cent year-on-year rise in operating profit to Rs 609 crore. Suryoday Small Finance Bank posted a 114 per cent jump in net profit to Rs 75 crore, while Cyient reported a 90 per cent sequential rise in consolidated net profit to Rs 104 crore. Shadowfax Technologies will also remain on investors' radar after Eight Roads, Flipkart and IMM India Fund initiated a block deal to sell up to a 9.08 per cent stake. Meesho reported a reduced net loss of Rs 133 crore compared with Rs 289 crore in the corresponding quarter last year.

No stock has been placed under the F&O ban for July 24.

Institutional activity remained mixed in the previous session. Foreign Institutional Investors sold equities worth Rs 2,999.23 crore, while Domestic Institutional Investors purchased shares worth Rs 2,947.14 crore on July 23.

Domestic equity benchmarks extended losses for a fourth consecutive session on Thursday as the spike in crude oil prices and geopolitical concerns weighed on sentiment. Nifty 50 declined 126.65 points, or 0.53 per cent, to close at 23,869.60, while the Sensex dropped 363.66 points, or 0.47 per cent, to 76,391.39. Bank Nifty lost 0.94 per cent and India VIX rose 1.37 per cent to around 13.5, reflecting heightened market volatility.

Global markets also remained under pressure overnight. Wall Street ended sharply lower, with the Nasdaq Composite tumbling 2.15 per cent as concerns over heavy artificial intelligence spending resurfaced following earnings updates from major technology companies. The Dow Jones Industrial Average fell 506.93 points, or 0.97 per cent, to 51,711.65, while the S&P 500 declined 90.66 points, or 1.21 per cent, to 7,408.30. Among the 11 major S&P 500 sectors, industrials emerged as the top performer, supported by gains in Defence companies including Lockheed Martin and RTX.

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