Pre-Market Update: Nifty 50 Likely to Open Higher on July 10; GIFT Nifty Signals Over 120-Point Gap-Up

The Indian stock market is expected to open on a positive note on Friday, July 10, supported by firm global cues and easing concerns over a broader escalation in the U.S.-Iran conflict. Investor sentiment improved after both countries continued technical-level discussions despite the recent exchange of military strikes.

At around 7:29 AM, GIFT Nifty was trading near 24,115, indicating an opening gain of more than 120 points over the previous close of Nifty futures. Asian markets traded higher, while U.S. equities ended overnight with solid gains, led by a rally in Semiconductor stocks that lifted the broader technology sector.

Geopolitical developments remain on investors' radar after the U.S. carried out fresh strikes on Iran on Thursday. Iran responded by targeting Washington's regional allies, raising concerns over the fragile interim peace arrangement. However, a U.S. official said technical-level talks between both countries are continuing, helping calm market nerves.

Tata Consultancy Services (TCS) reported a mixed set of quarterly numbers. On a sequential basis, net profit declined 2.7 per cent to Rs 13,349 crore, while revenue rose 2.2 per cent to Rs 72,275 crore. Revenue in constant currency grew 0.4 per cent. EBIT declined 3 per cent quarter-on-quarter to Rs 17,317 crore, with the EBIT margin narrowing to 24 per cent from 25.3 per cent in the previous quarter. The company reported a Total Contract Value (TCV) of USD 9.5 billion and declared an interim Dividend of Rs 12 per share. July 15 has been fixed as the record date. On a year-on-year basis, TCS posted a 4.6 per cent rise in profit and a 13.9 per cent increase in revenue, while EBIT grew 11.6 per cent. EBIT margin moderated to 23.95 per cent from 24.45 per cent.

The U.S. labour market continued to show resilience. Initial jobless claims declined by 2,000 to a seasonally adjusted 215,000 for the week ended July 4, lower than economists' expectation of 218,000.

Japan's producer price index rose 7.1 per cent year-on-year in June, accelerating from a revised 6.6 per cent increase in May and exceeding market expectations of 6.8 per cent.

Crude oil prices remained largely stable amid ongoing diplomatic engagement between the U.S. and Iran. Brent crude slipped 0.09 per cent to USD 76.23 per barrel, while WTI crude declined 0.24 per cent to USD 71.91 per barrel.

Gold prices were little changed but remained on track for a weekly decline of more than 1 per cent. Spot gold traded at USD 4,122.09 per ounce, while U.S. gold futures for August delivery fell 0.2 per cent to USD 4,131.50 per ounce. Spot silver eased 0.1 per cent to USD 59.94 per ounce.

The U.S. dollar traded marginally lower but remained on track for a largely unchanged week. The dollar stood at 162.36 against the Japanese yen. The euro gained 0.02 per cent to USD 1.1433, while the British pound rose 0.03 per cent to USD 1.3413.

From the derivatives segment, the Put-Call Ratio (PCR) stood at 0.79. The highest addition in put open interest was recorded at the 23,600 strike, which also emerged as the largest open interest base. On the call side, the highest fresh open interest addition was seen at the 24,700 strike, while the highest overall call open interest remained at the 24,500 strike.

Technically, Nifty 50 has immediate support at 23,928, followed by 23,879 and 23,799. Resistance is placed at 24,088, 24,137 and 24,217. The index continues to trade in a consolidation range with 23,800 acting as a key support. A sustained move above the 24,200-24,300 zone could revive bullish momentum, while a break below 23,800 may trigger further weakness towards 23,600.

Among stocks in focus, Tata Consultancy Services reported Q1 FY27 earnings with profit rising 4.6 per cent year-on-year to Rs 13,349 crore and revenue increasing 13.9 per cent to Rs 72,275 crore, besides announcing an interim dividend of Rs 12 per share. Anand Rathi Wealth posted a 73.6 per cent jump in profit to Rs 163 crore, while revenue increased 17.5 per cent to Rs 322 crore. Dixon Technologies signed a joint venture agreement with Vivo Mobile India, with Dixon holding a 51 per cent stake and Vivo India owning 49 per cent. Vikram Solar entered into a 130 MW solar cell supply agreement with Evervolt Solar Technology India. Power Grid Corporation received a Letter of Intent for an inter-state transmission project under the BOOT model. Havells India partnered with Norway-based Pixii AS to develop Battery Energy Storage Systems in India.

Torrent Pharmaceuticals voluntarily recalled select batches of Semalix injection disposable pens following a recall by Dr Reddy's Laboratories, while other Semaglutide products remain unaffected. Container Corporation of India and GAIL signed an agreement to establish an LNG dispensing station at CONCOR's ICD in Khodiyar, Ahmedabad. Pace Digitek's subsidiary Lineage Power signed two MoUs for Battery Energy Storage Systems supply. AWL Agri Business highlighted up to 30 per cent higher yields under its regenerative mustard programme. Vijaya Diagnostic Centre appointed Narasimha Raju KA as Chief Financial Officer with effect from July 9. Premier Energies inaugurated a 5.6 GW solar module manufacturing facility in Telangana and began developing a 6 GWh Battery Energy Storage Systems plant along with an aluminium frames unit. Great Eastern Shipping took delivery of tanker Jag Laxman, taking its fleet to 41 vessels with a total capacity of 3.35 million DWT and nearly 100 per cent utilisation.

Kaynes Technology remains under the F&O ban for July 10.

On July 9, Foreign Institutional Investors (FIIs) were net sellers of Indian equities worth Rs 532.86 crore, while Domestic Institutional Investors (DIIs) purchased shares worth Rs 2,057.79 crore.

Indian benchmark indices ended higher on Thursday as short covering and optimism ahead of the earnings season supported sentiment. The Sensex gained 238.22 points, or 0.31 per cent, to close at 76,741.82, while the Nifty 50 advanced 80.75 points, or 0.34 per cent, to settle at 23,962.80.

U.S. markets ended higher overnight, led by semiconductor stocks. The Dow Jones Industrial Average rose 0.27 per cent to 52,487.41, the S&P 500 gained 0.81 per cent to 7,543.66 and the Nasdaq Composite climbed 1.30 per cent to 26,206.89. AMD surged 5.67 per cent, Meta Platforms gained 4.70 per cent, Micron Technology rose 4.52 per cent, Broadcom advanced 3.20 per cent, Tesla climbed 3.20 per cent, SpaceX added 2.63 per cent and Amazon gained 1.40 per cent. Nvidia was the only major laggard, declining 0.66 per cent.

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