Pre-Market Update: Nifty Likely to Open Lower on July 22; GIFT Nifty Signals Weak Start as Crude Tops $92

The Indian stock market is expected to witness a cautious start on Wednesday, July 22, with the Sensex and Nifty 50 likely to open lower amid elevated crude oil prices, intensifying U.S.-Iran tensions and global trade concerns. Although Wall Street staged a strong rebound overnight, geopolitical uncertainty and higher energy prices continue to weigh on investor sentiment.

At around 7:30 AM, the GIFT Nifty was trading near 24,113, down 56 points from the previous close of Nifty futures, indicating a weak opening for domestic equities.

The geopolitical situation remains in focus after the U.S. military carried out its 11th consecutive day of strikes on Iranian military infrastructure, including operations centres, aircraft hangars, maritime assets, drone storage facilities and Logistics infrastructure. Earlier, U.S. President Donald Trump had indicated that the area near Pickaxe Mountain could be targeted in future operations, keeping global markets on edge.

Adding to global concerns, Trump announced fresh tariffs on imported generic medicines. Generic drug imports into the U.S. will continue to attract zero tariff until August 2028. Thereafter, tariffs will increase to 100 per cent for one year before rising to 200 per cent.

Japan also remained in focus after its trade deficit widened sharply in June. Exports increased 19.3 per cent year-on-year, while imports rose 25.4 per cent, resulting in a trade deficit of Yen 406.9 billion (USD 2.49 billion), significantly higher than market expectations of a Yen 120 billion deficit. Japanese government bond yields also moved higher amid inflation concerns, with the benchmark 10-year yield rising 2.5 basis points to 2.745 per cent, while the 5-year yield climbed to 1.960 per cent. The 40-year yield remained unchanged at 3.89 per cent.

Crude oil prices continued their rally on fears of supply disruptions following the latest U.S. strikes on Iran. Brent crude advanced 1.22 per cent to USD 92.12 per barrel, while WTI crude gained 1.09 per cent to USD 85.26 per barrel.

Precious metals also remained firm. Spot gold edged up 0.1 per cent to USD 4,080.79 per ounce after a nearly 2 per cent jump in the previous session, while spot silver was steady at USD 58.83 per ounce. Meanwhile, the U.S. Dollar Index remained close to a one-week high at 101.20.

Derivatives positioning suggests a cautious undertone ahead of the July series expiry. The Put-Call Ratio stands at 0.91. Significant Put open interest addition and concentration were seen at the 24,200 and 24,000 strike prices, while the highest Call open interest addition and concentration were also recorded at the 24,200 strike, indicating that this level could act as a key hurdle.

Technically, Nifty 50 is expected to find immediate support at 24,100, followed by the crucial 24,000 level. On the upside, the 24,300-24,400 zone is likely to act as a strong resistance area. Based on pivot levels, immediate resistance is placed at 24,244, 24,273 and 24,322, while support is seen at 24,147, 24,117 and 24,069. Although the index formed a small-bodied bearish candle on the daily chart, indicating indecision between buyers and sellers, it continues to trade above its key moving averages, suggesting that the broader trend remains positive.

Stock-specific action is expected to remain strong as companies continue to report June quarter earnings. Bandhan Bank reported a 35 per cent rise in net profit to Rs 501.7 crore, while net interest income increased 5.9 per cent and provisions declined 40.5 per cent. Gross NPA improved to 3.15 per cent and net NPA declined to 0.93 per cent.

Indian Hotels Company posted a 20.8 per cent increase in consolidated profit to Rs 357.9 crore on a 14.6 per cent rise in revenue. IndiaMART InterMESH reported a 12.2 per cent rise in profit and 11.4 per cent growth in revenue. AAVAS Financiers delivered a 23 per cent increase in profit, while net interest income rose 16.7 per cent. Trident reported a 13 per cent growth in profit with revenue increasing 4.7 per cent.

MedPlus Health Services reported a 21.7 per cent decline in profit despite a 21.8 per cent increase in revenue. The company also announced investments of Rs 40 crore in a food park and Rs 115 crore in a concierge health and wellness facility in Hyderabad. Hatsun Agro Product posted a marginal 1.1 per cent decline in profit despite revenue growing 19.3 per cent. Mastek reported a 15 per cent rise in profit and 7.7 per cent revenue growth, while Sagility recorded a 46 per cent jump in profit with revenue increasing 27.6 per cent.

Sunteck Realty reported a 26.5 per cent increase in profit, while Cyient DLM more than doubled its quarterly profit as revenue surged 34.3 per cent. TVS Holdings posted a 73.8 per cent rise in consolidated profit and a 34 per cent increase in revenue. JSW Infrastructure reported an 8.2 per cent decline in profit despite revenue growing 18 per cent.

Gabriel India reported 15.5 per cent revenue growth and a 2 per cent rise in profit. It also announced the acquisition of a 30 per cent stake in HL Klemove India for USD 98.44 million. Maruti Suzuki India announced a price increase of up to Rs 30,000 across its model range from August 2026 due to rising input costs.

Anant Raj proposed to demerge its data centre and cloud services business into a separate listed entity, subject to NCLT approval. Aditya Birla Capital invested Rs 123.89 crore through a rights issue in Aditya Birla Health Insurance without changing its shareholding. Aurobindo Pharma said its subsidiary CuraTeQ Biologics received ANVISA approval for its biosimilars manufacturing facility in Hyderabad.

In the derivatives segment, Kaynes remains under the F&O ban for July 22.

Institutional activity remained positive on Tuesday as Foreign Institutional Investors bought equities worth Rs 1,650.16 crore, while Domestic Institutional Investors were net sellers worth Rs 656.88 crore.

The domestic market ended lower for the second straight session on Tuesday as geopolitical tensions and rising crude oil prices hurt investor sentiment. The Sensex declined 238.41 points, or 0.31 per cent, to close at 77,470.11, while the Nifty 50 fell 50.80 points, or 0.21 per cent, to settle at 24,187.70.

Global cues, however, remained supportive. U.S. markets ended sharply higher, led by technology and Semiconductor stocks. The Dow Jones Industrial Average rose 385.38 points, or 0.74 per cent, to 52,224.64. The S&P 500 gained 65.92 points, or 0.89 per cent, to close at 7,509.20, while the Nasdaq Composite climbed 329.13 points, or 1.29 per cent, to 25,837.21. Among individual stocks, Nvidia gained 1.97 per cent, AMD surged 8.11 per cent, Intel rallied 8.64 per cent, Micron Technology jumped 12.17 per cent and Broadcom rose 2.21 per cent. Tesla advanced 2.53 per cent, while SpaceX shares gained 3.08 per cent. Microsoft was the notable laggard, declining 1.13 per cent.

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