Pre-Market Update: Nifty 50 Likely to Open Lower on July 23; GIFT Nifty Signals Weak Start as U.S.-Iran Tensions Escalate

The Indian stock market is expected to open on a weak note on Thursday, July 23, as rising geopolitical tensions in the Middle East, higher crude oil prices and mixed global market cues weighed on investor sentiment. GIFT Nifty was trading around 23,892 at 7:30 AM, down 69 points from the previous close of Nifty futures, indicating a subdued opening for the domestic benchmark indices.

Asian markets traded higher in early deals, while U.S. equities ended lower overnight. Technology stocks remained under pressure, dragging the Nasdaq lower ahead of key corporate earnings announcements.

Escalating tensions between the U.S. and Iran remain the biggest concern for global financial markets. The U.S. military carried out another round of overnight strikes on Iran's military and infrastructure facilities. U.S. President Donald Trump said Iran wants to negotiate an end to the conflict but added that Tehran is not yet ready for a deal. Meanwhile, Iran continued disrupting maritime traffic by targeting and blockading vessels passing through the Strait of Hormuz, raising concerns over global energy supplies.

Crude oil prices extended their rally to the highest level in more than six weeks. Brent crude rose 1.58 per cent to USD 95.56 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 1.30 per cent to USD 87.96 per barrel after surging nearly 3 per cent in the previous trading session.

Precious metals also attracted buying interest amid geopolitical uncertainty. Spot gold edged up 0.1 per cent to USD 4,133.82 per ounce, while silver remained largely unchanged at USD 59.75 per ounce.

The U.S. dollar remained broadly steady as investors preferred safe-haven assets. The Dollar Index was flat at 101.11, while the Japanese yen continued to hover near a 40-year low.

Ahead of the July series expiry, derivatives data indicates a cautious market setup. The Put-Call Ratio (PCR) stands at 0.73. Significant Put open interest addition as well as the highest Put open interest was seen at the 24,000 strike. On the Call side, the highest addition in open interest was also recorded at 24,000, while the maximum Call open interest remained concentrated at the 24,200 strike.

Technically, Nifty 50 closed at 23,996.25 after slipping below the crucial 24,000 mark. Analysts believe sustained trading below this level could drag the index towards 23,800, while any pullback is likely to face resistance in the 24,100-24,200 zone. Based on pivot levels, immediate resistance is placed at 24,120, 24,168 and 24,246, whereas support is seen at 23,963, 23,915 and 23,836. The benchmark has formed a long bearish candle and slipped below its short-term moving averages, the 100-day EMA and the Bollinger Bands' midline. Momentum indicators such as RSI and MACD also continue to indicate a bearish bias.

Stock-specific action is expected to remain strong as several companies announced their June quarter earnings and corporate developments.

Dr Reddy's Laboratories reported a sharp 69 per cent year-on-year decline in net profit to Rs 443.5 crore, while revenue fell 6 per cent to Rs 8,070.5 crore. North America revenue plunged 35 per cent, EBITDA declined 55.7 per cent and EBITDA margin narrowed to 12.5 per cent from 26.7 per cent.

IndusInd Bank posted a 46.5 per cent rise in quarterly profit to Rs 1,002.5 crore, supported by lower provisions. Gross NPA improved to 3.25 per cent, while Net NPA declined to 0.95 per cent.

Hindustan Petroleum Corporation (HPCL) reported a net loss of Rs 11,526.4 crore in the June quarter against a profit of Rs 4,370.9 crore a year earlier despite revenue increasing 26.8 per cent.

United Spirits reported an 11 per cent rise in profit to Rs 463 crore on a 6.2 per cent increase in revenue to Rs 2,708 crore.

Tanla Platforms posted a 20.1 per cent increase in profit to Rs 142.2 crore, while revenue grew 17.8 per cent to Rs 1,226.4 crore.

IIFL Finance reported a 189.3 per cent jump in profit to Rs 675.1 crore, supported by a 54.8 per cent rise in net interest income and lower impairment charges.

Waaree Renewable Technologies recorded a 34.1 per cent increase in profit to Rs 115.9 crore, with revenue rising 53.2 per cent.

NTPC Green Energy reported a 38.3 per cent growth in profit to Rs 304.8 crore as revenue climbed 62.7 per cent year-on-year.

Oracle Financial Services Software delivered a strong performance, with profit surging 120.5 per cent to Rs 1,415.5 crore and revenue rising 68.7 per cent.

HEG reported a 16.7 per cent increase in profit to Rs 122.3 crore, while revenue grew 11.1 per cent.

Nippon Life India Asset Management posted a 27.2 per cent rise in profit to Rs 503.7 crore, with revenue increasing 26.4 per cent.

HCL Technologies said it has been selected by TIM Brasil to enable South America's first cross-platform eSIM transfer capability, strengthening its telecom digital transformation offerings.

Rubicon Research acquired a manufacturing facility in New Jersey, U.S., from InvaTech Pharma Solutions for an enterprise value of USD 2.9 million, expanding its manufacturing footprint in the U.S.

Sona BLW Precision Forgings signed definitive agreements with Japan's DENSO Corporation to establish two joint ventures focused on advanced electric and hybrid powertrain systems.

In the derivatives segment, Kaynes remains under the F&O ban list for July 23.

Institutional investors remained net sellers in the cash market on July 22. Foreign Institutional Investors (FIIs) sold equities worth Rs 819.20 crore, while Domestic Institutional Investors (DIIs) offloaded shares worth Rs 418.26 crore.

On Wednesday, Indian benchmark indices ended sharply lower amid broad-based selling. The Sensex declined 715.06 points, or 0.92 per cent, to close at 76,755.05, while the Nifty 50 dropped 191.45 points, or 0.79 per cent, to settle at 23,996.25.

Overnight, U.S. markets ended mixed to lower as investors remained cautious ahead of major earnings and monitored developments in the Middle East. The Dow Jones Industrial Average slipped 6.06 points to 52,218.58, the S&P 500 declined 10.24 points to 7,498.96, while the Nasdaq Composite fell 146.30 points, or 0.57 per cent, to 25,690.90.

Among individual stocks, Nvidia gained 2.30 per cent, while Microsoft fell 1.86 per cent, Alphabet declined 1.24 per cent, Meta Platforms dropped 2.58 per cent, Apple eased 0.56 per cent, Tesla slipped 1.30 per cent and SpaceX declined 6.70 per cent. Super Micro Computer surged 19.84 per cent and Dell Technologies advanced 9.30 per cent.

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