Pre-Market Update: Nifty 50 Likely to Open Lower on July 20 as Crude Oil Surges Above $90

Indian benchmark indices Sensex and Nifty 50 are expected to open lower on Monday, July 20, tracking weak global cues as escalating U.S.-Iran tensions, rising crude oil prices and weak overseas market trends impacted investor sentiment.

Asian markets traded lower, while U.S. equities ended the previous week in negative territory due to continued selling pressure in Semiconductor stocks. At 7:35 AM, GIFT Nifty was trading near 24,300, indicating a discount of around 300 points compared with the previous Nifty futures close, signalling a weak opening for domestic equities.

Investors will closely monitor Q1FY27 earnings from major companies, crude oil movements, institutional flows, derivatives positioning and global market developments. Stock-specific action is expected to remain strong as several major companies have announced their Quarterly Results.

The escalation in U.S.-Iran tensions remains a key market trigger. The U.S. launched fresh airstrikes on Iran after confirming the death of another American service member. Iran responded by firing missiles towards Jordan, raising concerns about further escalation in the region. Bahrain also activated air raid sirens amid increasing geopolitical risks.

Crude oil prices surged following the latest developments in the Middle East. Brent crude climbed 2.71 per cent to USD 90.49 per barrel after gaining 15.9 per cent last week, while WTI crude oil increased 2.34 per cent to USD 84.42 per barrel. Higher crude prices may increase inflation concerns and impact oil-importing economies such as India.

Reliance Industries reported a strong performance for Q1FY27, supported by growth across business segments. Revenue from operations increased 4.4 per cent quarter-on-quarter to Rs 3,11,850 crore, while net profit jumped 23.4 per cent QoQ to Rs 20,946 crore. EBITDA grew 10 per cent YoY to Rs 54,067 crore. The company stated that all business segments delivered double-digit growth during the quarter.

The Banking sector will remain in focus after several major lenders announced their Q1FY27 results. HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Yes Bank, Punjab National Bank, IDBI Bank, RBL Bank and Punjab & Sind Bank reported their quarterly numbers.

HDFC Bank reported a 5 per cent YoY rise in standalone profit to Rs 19,059.7 crore. Net interest income increased 6.7 per cent to Rs 33,534 crore, while provisions declined 78.8 per cent to Rs 3,059.8 crore. Gross NPA stood at 1.17 per cent, while net NPA was at 0.41 per cent.

ICICI Bank posted a 15.9 per cent YoY growth in standalone profit at Rs 14,804.5 crore. NII increased 12.7 per cent to Rs 24,384.4 crore, while provisions declined 30.5 per cent to Rs 1,260.5 crore. Gross NPA improved to 1.38 per cent and net NPA stood at 0.35 per cent.

Kotak Mahindra Bank reported a 25.6 per cent YoY increase in standalone profit to Rs 4,123 crore. NII grew 9.2 per cent to Rs 7,928.4 crore, while provisions declined 44.7 per cent to Rs 668.1 crore. Gross NPA stood at 1.18 per cent and net NPA at 0.27 per cent.

Axis Bank recorded a 22.5 per cent YoY jump in standalone profit to Rs 7,113.9 crore. NII increased 8 per cent to Rs 14,646.1 crore, while provisions declined 43.7 per cent to Rs 2,222.5 crore. Gross NPA stood at 1.28 per cent and net NPA increased to 0.39 per cent.

Gold prices declined as inflation concerns and hawkish comments from U.S. Federal Reserve officials weighed on sentiment. Spot gold fell 0.4 per cent to USD 4,000.55 per ounce, while U.S. gold futures for August delivery declined 0.3 per cent to USD 4,005.90 per ounce. Spot silver gained 0.9 per cent to USD 56.42 per ounce.

In the derivatives market, the Put-Call Ratio (PCR) for Nifty 50 stood at 1.61. On the Put side, significant open interest addition was seen at the 23,200 strike, while major open interest concentration was observed near the 24,000 and 24,200 strikes. On the Call side, the highest open interest addition was recorded at the 24,700 strike, while call unwinding was seen at the 24,100 strike. The highest call open interest remained concentrated at the 25,000 strike.

The Nifty 50 closed Friday’s session at 24,334.30, maintaining a positive bias after breaking out from its recent consolidation range. Immediate resistance levels are placed at 24,369, followed by 24,433 and 24,535. The 24,400–24,500 zone remains a crucial hurdle, and a sustained move above this range could push the index towards 24,800–25,000 levels.

On the downside, immediate support is placed at 24,164, followed by 24,101 and 23,999. The 24,100–24,000 zone is expected to provide buying support if the index witnesses profit booking.

Among stocks in focus, Reliance Industries reported consolidated profit growth of 6.1 per cent YoY to Rs 23,196 crore. Gross revenue increased 24.5 per cent to Rs 3.40 lakh crore, while EBITDA rose 10.1 per cent to Rs 54,067 crore.

Jio Platforms reported a 9.2 per cent YoY increase in consolidated profit to Rs 7,764 crore. Revenue grew 11.8 per cent to Rs 39,173 crore, EBITDA increased 15.1 per cent to Rs 20,865 crore, and ARPU improved to Rs 215.60 from Rs 208.80.

NATCO Pharma received tentative U.S. FDA approval for generic Olaparib tablets. The reference drug has recorded estimated U.S. sales of USD 1.4 billion over the last 12 months.

Nuvama Wealth Management received an administrative warning from SEBI related to merchant banking activities. The company said the warning will not impact its financial performance or operations.

Samvardhana Motherson International received Japan court approval to acquire an 81 per cent stake in Yutaka Giken and an 11 per cent stake in Shinnichi Kogyo Co.

GAIL India signed an MoU with KABIL to collaborate on critical and strategic minerals, while Aditya Birla Capital invested Rs 484.5 crore in Aditya Birla Sun Life Insurance through a rights issue.

Sterlite Technologies launched its advanced FTTH solution, CONCAT, in the U.S. market after successful field trials with a major telecom operator. Cipla’s U.S. FDA inspection of InvaGen Pharmaceuticals’ New York facility resulted in one Form 483 observation.

Power Grid Corporation of India emerged as the successful bidder for the Fatehgarh-II Transmission Project. Force Motors’ Associate Vice President Amit Pramod Joshi resigned due to personal reasons, effective July 17. SpiceJet received a Rs 1 lakh penalty from CCPA over alleged use of dark patterns on its online flight booking platform.

Kaynes Technologies is under the F&O ban for Monday’s trading session.

Foreign Institutional Investors (FIIs) were net sellers on July 18, selling equities worth Rs 376.41 crore. Domestic Institutional Investors (DIIs), meanwhile, bought shares worth Rs 1,017.89 crore during the same session.

Indian markets ended Friday’s session with strong gains ahead of Q1 earnings. The Sensex surged 964.58 points or 1.25 per cent to close at 78,151.45, while the Nifty 50 gained 261.55 points or 1.09 per cent to settle at 24,334.30.

U.S. stock markets ended lower on Friday, with all three major indices registering weekly losses as semiconductor stocks continued to face selling pressure. The Dow Jones Industrial Average declined 406.55 points or 0.77 per cent to 52,146.42. The S&P 500 fell 76.08 points or 1.01 per cent to 7,457.69, while the Nasdaq Composite dropped 361.70 points or 1.40 per cent to 25,520.24.

Among major technology stocks, Nvidia declined 2.21 per cent, Microsoft fell 1.82 per cent, Meta Platforms dropped 2.79 per cent, Alphabet slipped 2.17 per cent, Tesla declined 2.61 per cent and SpaceX shares fell 5.43 per cent.

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