Pre-Market Update: Nifty 50 Set for Flat-to-Positive Start on July 31; 100+ Q1 Earnings, Global Cues in Focus

Indian benchmark indices, the Sensex and Nifty 50, are expected to open on a flat-to-positive note on Friday, July 31, tracking supportive global cues. Gift Nifty trends at 7:32 AM indicated a positive opening, with Gift Nifty trading around 24,428, a premium of nearly 70 points over the previous close of Nifty futures.

Geopolitical developments remain on investors' radar as tensions between the U.S. and Iran continue to escalate. Egypt reported its first direct drone strike after two vessels caught fire at the Port of Damietta, although no casualties were reported. In response to growing security concerns, Saudi Arabia and 13 other nations announced a Maritime Defense Alliance to secure key shipping routes across the Red Sea, Gulf of Aden and Bab el-Mandeb Strait. The U.S. also imposed fresh sanctions on Iran's Mahan Air, alleging support to the Islamic Revolutionary Guard Corps (IRGC) and the transportation of drones and weapons.

Meanwhile, U.S. President Donald Trump announced that a breakthrough agreement had been reached for the complete disarmament of Hamas and other armed groups in Gaza. The proposed deal includes a phased withdrawal of Israeli forces and the formation of a new Palestinian administration backed by an international stabilisation force. Hamas confirmed an agreement in principle but said implementation would depend on Israel fulfilling its commitments. Egypt is expected to host further negotiations to finalise the ceasefire roadmap.

Crude oil prices remained elevated amid concerns over potential supply disruptions from the Middle East. Brent crude traded near USD 89 per barrel and is on track to register a monthly gain of almost 25 per cent after renewed military action between the U.S. and Iran increased geopolitical risks. However, tanker movement through the Strait of Hormuz has improved after an earlier slowdown, easing some immediate supply concerns.

The April-June earnings season also remains a major trigger for the domestic market. More than 100 companies are scheduled to announce their Q1 FY27 results on Friday, including Sun Pharmaceutical Industries, Maruti Suzuki India, ITC, Bajaj Finserv, Indian Oil Corporation, ABB India, GAIL India, Aditya Birla Capital, Shree Cement, Dixon Technologies, National Aluminium Company, Glenmark Pharma and Narayana Hrudayalaya.

Gold prices were heading for their first monthly gain in five months as investors assessed geopolitical risks and the U.S. Federal Reserve's outlook on inflation and interest rates. Spot gold traded around USD 4,096 per ounce, while U.S. gold futures were near USD 4,094 per ounce.

Derivatives data for the August series indicates a Put-Call Ratio (PCR) of 1.29. Significant put open interest addition was seen at the 24,300 and 23,400 strike prices, while the highest put open interest remained concentrated at 24,000. On the call side, fresh additions were visible at 24,500, with the highest overall call open interest at the 25,600 strike.

From a technical perspective, the Nifty 50 is expected to remain positive as long as it holds above the immediate support level of 24,100. The index faces immediate resistance around 24,400, which also coincides with its 200-day exponential moving average (EMA). A sustained move above this level could pave the way for an advance towards the 24,500-24,600 zone. Based on pivot levels, immediate support is placed at 24,223, 24,186 and 24,127, while resistance is seen at 24,342, 24,379 and 24,438.

Stock-specific action is likely to remain strong after several companies reported their quarterly earnings. Tata Steel posted an 11.6 per cent rise in net profit to Rs 2,318.5 crore, while revenue increased 14.3 per cent to Rs 60,794.3 crore. The company also approved a Rs 33,873 crore capital expenditure plan to expand steelmaking capacity despite reporting an exceptional loss. Bajaj Finance reported a 28 per cent increase in net profit to Rs 6,081 crore, with net interest income rising 23 per cent. Swiggy narrowed its quarterly loss to Rs 791 crore as revenue surged 37.3 per cent.

Among other companies, Mazagon Dock Shipbuilders reported a 21.5 per cent rise in profit, while Torrent Pharmaceuticals posted strong revenue growth despite higher expenses. Aarti Industries delivered a sharp 260.5 per cent jump in profit, Satin Creditcare Network reported a 182.4 per cent increase in earnings, and GNG Electronics posted robust growth in both revenue and profit. On the weaker side, Chambal Fertilisers & Chemicals, Data Patterns, Nucleus Software Exports and Thermax reported lower profitability. RailTel Corporation of India posted higher revenue but marginally lower profit. Astra Microwave Products secured a Rs 2,205.23 crore Defence order from Hindustan Aeronautics for the Uttam Radar programme, while Navin Fluorine International signed an agreement with DRDO for the bulk manufacturing of sodium borohydride.

There are no stocks under the F&O ban for Friday's trading session.

Institutional activity remained supportive for the market. On July 30, Foreign Institutional Investors (FIIs) were net buyers of Indian equities worth Rs 3,623.51 crore, while Domestic Institutional Investors (DIIs) booked profits and sold shares worth Rs 1,864.03 crore.

Domestic benchmark indices extended gains for a second consecutive session on Thursday. The Sensex rose 274 points, or 0.35 per cent, to close at 77,928, while the Nifty 50 gained 67 points, or 0.28 per cent, to settle at 24,317. Buying in heavyweight stocks such as Reliance Industries, HDFC Bank and Mahindra & Mahindra supported the benchmark indices despite weakness in the broader market following the U.S. Federal Reserve's policy decision.

Global cues also remained favourable after Wall Street ended sharply higher overnight. The Nasdaq Composite jumped 2.76 per cent, the S&P 500 gained 1.70 per cent and the Dow Jones Industrial Average advanced 607 points, or 1.18 per cent. Optimism was driven by strong technology earnings, particularly from Microsoft, which boosted confidence in artificial intelligence-related spending and lifted sentiment across global equity markets.

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