The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Friday, 7 August, as rising Brent crude oil prices and escalating tensions in the Middle East dampen investor sentiment. Brent crude climbed more than 1% to $83.45 a barrel, fuelling concerns over energy supplies, inflation, and their potential impact on global markets.
The Gift Nifty also signalled a weak start, trading at around 24,651.5, a discount of 88 points to the previous close of the Nifty futures.
In the previous session, domestic equity benchmarks ended on a positive note. The BSE Sensex advanced 373.76 points, or 0.48%, to close at 78,954.76, while the Nifty 50 gained 11.35 points, or 0.05%, to settle at 24,636, extending its gains despite a range-bound trading session.
Crude oil prices
Oil prices extended their rally on Friday amid renewed concerns over potential disruptions to shipping through the Strait of Hormuz, after Iran, in coordination with Oman, proposed fresh restrictions on vessels deemed hostile.
Brent crude futures rose 99 cents, or 1.2%, to $83.48 a barrel, while US West Texas Intermediate (WTI) crude gained 85 cents, or 1.1%, to $78.84 a barrel.
US-Iran war
Investor concerns intensified after reports that Iran is considering legislation to prohibit US, Israeli, and other vessels classified as hostile from transiting the Strait of Hormuz, a strategic waterway that handled nearly 20% of global oil and LNG shipments before the conflict escalated in late February.
According to Iran’s Fars News Agency, a parliamentary committee is reviewing a draft bill that would not only ban such vessels from using the strait but also impose penalties of up to 20% of the cargo’s value on ships found violating the proposed rules.
In a separate development, a senior Iranian official said Tehran is seeking to levy transit fees of 5% to 7% of cargo value on vessels using the Strait of Hormuz. Oman is reportedly negotiating for a fee of around 3%, while the United States continues to advocate for unrestricted, toll-free passage through the strategic shipping route.
What Gift Nifty live chart signals?
The Gift Nifty Live Chart shows a gap-down start for the Indian stock market today. By 8:05 AM, the Gift Nifty was trading around the 24,646 level, a discount of 93.4 points from the Nifty futures’ previous close of 24,739.40.
Ponmudi R, CEO of Enrich Money, said, Indian equity markets are expected to open on a cautious note as developments in the Middle East continue to shape global risk sentiment. GIFT Nifty futures are trading around 24,648 in early trade, marginally above the Nifty’s previous close of 24,636, pointing to a largely flat start for domestic equities.
Global cues remain mixed. Wall Street ended lower overnight as investors booked profits following the recent rally, while firmer Treasury yields and a rebound in crude oil prices reflected continued uncertainty over the pace of progress in Middle East negotiations. Optimism over a potential diplomatic breakthrough has been tempered by the absence of a formal agreement, leaving markets vulnerable to geopolitical headlines.
Stock market today
Speaking on the outlook for the Nifty 50 today, Ajit Mishra, Senior Vice President, Research at Religare Broking, said the Nifty 50 appears poised for the next leg of the upmove after consolidating in a narrow range over the past three sessions. The index is likely to first test the 24,800–25,000 zone, and a sustained move above this region could pave the way for an extension towards the 25,200 mark. On the downside, the 24,350–24,500 region is expected to provide a strong cushion against any near-term profit-taking.
On the outlook for the Bank Nifty today, Ponmudi R, CEO of Enrich Money, believes Bank Nifty is set to trade on a steady footing, with the underlying technical structure remaining favorable as the index continues to hold above its key support zones. Technically, the 58,200–58,300 band stands out as the immediate resistance area; a decisive move beyond this level would strengthen buying interest and open the path toward 58,500–58,600.
On the downside, the 57,800–57,700 zone serves as the first line of support, with a breakdown below this level exposing the index to a deeper pullback toward 57,400–57,300.
Stocks to buy today
Regarding stocks to buy today, market experts — Sumeet Bagadia of Choice Broking, Ganesh Dongre, and Senior Manager — Technical Research at Anand Rathi, recommended these eight buy-or-sell stocks for intraday trading: Sai Life Sciences Ltd, Exide Industries Ltd, BEML Ltd, Wipro Ltd, Bharat Electronics Ltd (BEL), City Union Bank Ltd, Triveni Turbine Ltd, and Himadri Speciality Chemical Ltd.
Sumeet Bagadia’s stock recommendations today
Buy Sai Life Sciences in cash at ₹1,413; SL at ₹1,365; TGT at ₹1,510
Buy Exide Industries in cash at ₹474; SL at ₹457; TGT at ₹508
Ganesh Dongre’s buy or sell stocks
Buy BEML at ₹1,725; sl at ₹1,685; tgt at ₹1,775
Buy Wipro at ₹186; sl at ₹182; tgt at ₹200
Buy BEL at ₹399; sl at ₹392; tgt at ₹410
Shiju Koothupalakkal’s intraday stocks for today
Buy City Union Bank cmp: ₹208.35; Target: ₹220; Stop loss: ₹203
Buy Triveni Turbine cmp: ₹646; Target: ₹680; Stop loss: ₹630
Buy Himadri Speciality Chemical cmp: ₹761; Target: 800; Stop loss: ₹745
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
