Pre-Market Update: Nifty 50 Likely to Open Muted on August 4; Gift Nifty Signals 23-Point Gap-Down

Indian benchmark indices Sensex and Nifty 50 are expected to open on a subdued note on Tuesday, August 4, as investors remain cautious amid uncertainty surrounding the U.S.-Iran conflict and await the outcome of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting. Despite positive global market cues, geopolitical tensions and elevated crude oil prices are likely to keep sentiment in check.

At around 7:19 AM, Gift Nifty was trading near 24,642, indicating an opening nearly 23 points below the previous close of Nifty futures. Asian markets traded mostly higher, while Wall Street ended Monday's session with modest gains.

Crude oil prices edged higher after witnessing a sharp decline in the previous session as concerns over possible supply disruptions from the Middle East continued. Brent crude futures rose 0.7 per cent to USD 84.39 per barrel after tumbling nearly 7 per cent on Monday. U.S. West Texas Intermediate (WTI) crude also gained 0.7 per cent to USD 80.95 per barrel after falling more than 5 per cent in the previous session.

The RBI's three-day MPC meeting entered its second day on Tuesday, with Governor Sanjay Malhotra scheduled to announce the policy decision on August 5. Economists broadly expect the central bank to keep the repo rate unchanged at 5.25 per cent while maintaining a cautious policy stance. Market participants will closely watch the RBI's commentary on inflation, growth and the future interest rate trajectory amid persistent global uncertainties.

Geopolitical developments remain another key monitorable. U.S. President Donald Trump recently said he would refrain from launching fresh strikes on Iran as diplomatic efforts continue. However, Iran denied that any negotiations with the U.S. are currently underway, keeping uncertainty over the Strait of Hormuz and global oil supplies intact.

The earnings season will remain in focus, with more than 130 companies scheduled to announce their April-June quarter results on Tuesday. Major companies reporting earnings include Bharti Airtel, ONGC, FSN E-Commerce Ventures (Nykaa), BSE, MCX, Bharti Hexacom, Kalyan Jewellers India and Marico.

Gold prices remained largely steady as investors assessed geopolitical developments and awaited key U.S. employment data for further clues on the Federal Reserve's policy outlook. Spot gold traded around USD 4,055.39 per ounce, while U.S. gold futures rose 0.6 per cent to USD 4,055.10 per ounce.

In the derivatives segment, the Put-Call Ratio (PCR) for the August series stood at 1.57. Significant put open interest addition was seen at the 24,600 and 23,500 strike prices, while the highest put open interest remained concentrated at 24,200. On the call side, fresh open interest addition was recorded at 24,600, while the highest unwinding was seen at 24,400. The largest call open interest continued at the 25,600 strike.

Technically, Nifty 50 is expected to consolidate after four consecutive sessions of gains. Immediate support is placed in the 24,600-24,500 zone, while sustaining above 24,774 could pave the way towards 24,850, followed by the 25,000-25,150 range. Based on pivot levels, resistance is placed at 24,787, 24,848 and 24,947, while support is seen at 24,589, 24,528 and 24,429. Momentum indicators such as the RSI and MACD continue to support the broader bullish trend.

Several stocks are likely to remain in focus following earnings and corporate developments. SBI Funds Management reported a 3.7 per cent year-on-year rise in consolidated profit to Rs 880.3 crore, while revenue increased 15.2 per cent to Rs 1,152.7 crore. Kalpataru narrowed its consolidated loss to Rs 26.5 crore as revenue rose 6.5 per cent. Krishna Institute of Medical Sciences (KIMS) posted a 47.2 per cent decline in profit despite strong revenue growth of 35.3 per cent.

Torrent Power reported a 12.7 per cent decline in profit, while Great Eastern Shipping posted a 159.4 per cent surge in quarterly earnings. DLF reported a 4.1 per cent increase in profit despite a sharp decline in revenue. IREDA posted a 37.1 per cent rise in profit, while Texmaco Rail & Engineering reported a 66.8 per cent increase in earnings supported by higher other income and a Tax write-back.

Kansai Nerolac Paints, GlaxoSmithKline Pharmaceuticals, KEI Industries and Gulf Oil Lubricants also reported healthy earnings growth. DOMS Industries reported lower profit despite higher revenue, while Restaurant Brands Asia narrowed its quarterly loss.

One 97 Communications (Paytm) reported largely flat quarterly profit, while SAIF Partners is expected to sell a 2.3 per cent stake worth around Rs 2,002 crore through block deals. Meesho may witness a block deal as Peak XV Partners and Elevation Capital plan to sell a combined 2.3 per cent stake worth nearly Rs 1,900 crore.

Life Insurance Corporation of India (LIC) will remain in focus as the government launches an offer for sale (OFS) of up to 6.5 per cent stake at a floor price of Rs 382 per share. Arvind launched its qualified institutional placement (QIP) with a floor price of Rs 518.58 per share. VVIP Infratech secured a letter of intent for a Rs 198.50 crore sewerage project in Delhi, while UPL announced the resignation of UPL Corporation CEO Mike Frank, effective August 31.

No stock has been placed under the F&O ban list for August 4.

Institutional investors remained net buyers on August 3. Foreign Institutional Investors (FIIs) purchased equities worth Rs 922.26 crore, while Domestic Institutional Investors (DIIs) bought shares worth Rs 1,571.18 crore.

Domestic equity benchmarks extended their winning streak for a fourth consecutive session on Monday. The BSE Sensex gained 544 points, or 0.70 per cent, to close at 78,639, while the Nifty 50 advanced 391 points, or 1.60 per cent, to settle at 24,774.30. The rally was supported by easing crude oil prices and optimism surrounding a possible diplomatic resolution to the U.S.-Iran conflict.

Wall Street also ended higher on Monday, supported by gains in technology stocks and easing energy prices. Dow Jones futures rose 83 points, while S&P 500 and Nasdaq-100 futures advanced modestly. Amazon crossed the USD 3 trillion market capitalisation milestone, while Nvidia, Meta Platforms, Alphabet and Microsoft also ended with gains.

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