Pre-Market Update: Nifty 50 Likely to Open Higher on August 6

Indian equity benchmarks, the Sensex and Nifty 50, are likely to open on a positive note on Thursday, August 6, supported by firm GIFT Nifty trends despite mixed global cues. As of 7:31 AM, GIFT Nifty was trading near 24,674, indicating an opening premium of around 40 points over the previous close of Nifty futures. Investors will closely monitor corporate earnings, global markets, crude oil prices, geopolitical developments and derivatives positioning on the weekly F&O expiry day.

Asian markets traded mixed in early trade, while Wall Street delivered a strong overnight performance. The Dow Jones Industrial Average closed at a record high, extending its winning streak to five sessions. The index gained 263.24 points, or 0.49 per cent, while the S&P 500 declined 0.17 per cent and the Nasdaq Composite fell 0.83 per cent. U.S. futures were mixed in early Thursday trade, with Dow futures up 0.2 per cent, S&P 500 futures gaining 0.2 per cent and Nasdaq 100 futures trading largely flat.

Crude oil prices edged lower as investors assessed reports that ongoing Iran-Oman negotiations could pave the way for a U.S.-Iran peace agreement and the reopening of the Strait of Hormuz after months of disruption. Brent crude futures fell 0.5 per cent to USD 79.08 per barrel, while U.S. West Texas Intermediate crude declined 0.7 per cent to USD 74.69 per barrel.

According to Reuters, a proposed agreement could allow Iran greater authority over vessels entering the Gulf through the Strait of Hormuz, although the U.S. has not responded to the proposal. While President Donald Trump has indicated that a deal to reopen the strategic waterway could be reached soon, U.S. officials have maintained that Washington would not accept Iranian control over the passage. Iran has also warned Gulf nations that any fresh U.S. military strike could trigger retaliatory attacks on key regional energy infrastructure, keeping geopolitical risks elevated.

The June quarter earnings season remains in focus, with more than 150 companies scheduled to announce their Q1 FY27 results on Thursday. Major companies reporting earnings include Life Insurance Corporation of India, Trent, Britannia Industries, Hero MotoCorp, Emcure Pharmaceuticals and Lupin.

Gold prices extended gains for a fourth consecutive session, supported by a weaker U.S. dollar and softer Treasury yields. Spot gold climbed 1 per cent to USD 4,285.69 per ounce, its highest level since June 18, after posting its strongest single-day gain since February in the previous session.

Derivative positioning suggests cautious sentiment ahead of the August F&O expiry. The Put-Call Ratio stood at 0.72. Significant put open interest addition was seen at the 24,000 and 24,200 strike prices, with the highest concentration at 24,000. On the call side, fresh additions were visible at the 24,700 and 26,000 strikes, while the highest open interest remained at the 25,000 strike, indicating a strong resistance zone.

The Nifty 50 ended the previous session at 24,624.65, continuing to consolidate above the 24,600 mark. Immediate support is seen in the 24,500-24,400 zone, while pivot-based support levels are placed at 24,531, 24,489 and 24,420. On the upside, resistance is placed at 24,669, 24,711 and the key 24,700-24,800 range. A sustained move above this zone could pave the way for an advance towards 25,000, while a break below 24,500 may increase selling pressure. The broader technical structure remains positive as the index continues to trade above key moving averages, with RSI and MACD indicating underlying bullish momentum.

Stock-specific action is expected to remain strong after a series of corporate updates. Navin Fluorine International reported a sharp rise in quarterly profit, while PB Fintech posted a 92.4 per cent year-on-year jump in consolidated net profit. Neuland Laboratories also delivered robust earnings with profit surging significantly. Cummins India reported strong revenue growth but weaker profitability due to margin pressure. Bayer CropScience posted improved earnings, whereas JK Lakshmi Cement and Aster DM Quality Care reported weaker profit performance. Cohance Lifesciences received five observations from the U.S. FDA following an inspection of its Hyderabad facility, while SIS Ltd reported healthy growth in both revenue and profit.

LIC India remains under the F&O ban list for August 6.

Institutional activity remained mixed in the previous session. Foreign Institutional Investors (FIIs) were net sellers of equities worth Rs 943.42 crore, while Domestic Institutional Investors (DIIs) purchased shares worth Rs 2,883.17 crore.

On Wednesday, Indian equity benchmarks ended nearly unchanged after the Reserve Bank of India kept the repo rate unchanged and highlighted the economy's resilience despite a marginal rise in first-quarter FY27 inflation amid persistent global uncertainties. The BSE Sensex gained 152 points, or 0.19 per cent, to close at 78,581, while the Nifty 50 rose 10 points, or 0.04 per cent, to settle at 24,624.65.

Overall, domestic markets are expected to begin Thursday's session on a firm footing, although investor sentiment is likely to remain sensitive to quarterly earnings, developments surrounding the Strait of Hormuz, crude oil prices, F&O expiry positioning and global market trends.

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