Pre-Market Update: Sensex, Nifty 50 Likely to Open Higher on May 22 Amid Hopes of U.S.-Iran Peace Deal; ITC, LIC, GAIL in Focus

Pre-Market Update at 7:42 AM: The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Friday, May 22, tracking positive global cues amid growing hopes of a potential peace agreement between the U.S. and Iran.

Gift Nifty was trading around the 23,665 mark, at a premium of nearly 75 points over the previous close of Nifty futures, indicating a positive start for the domestic equity market.

Investor sentiment improved after reports suggested that the U.S. and Iran are holding indirect negotiations to finalise a framework for a possible agreement aimed at easing tensions in the Middle East. According to reports, both sides are currently exchanging draft proposals and messages. U.S. Secretary of State Marco Rubio said there were “some good signs” in the discussions, although issues related to Iran’s uranium stockpile and control over the Strait of Hormuz remain key concerns.

Asian markets traded higher, while Wall Street ended with gains overnight as hopes of a possible de-escalation in the U.S.-Iran conflict boosted risk appetite globally.

Markets are closely tracking developments around the ongoing negotiations between the U.S. and Iran. A potential agreement could reduce geopolitical tensions and ease concerns over energy supply disruptions in the Middle East.

Economic data from the U.S. showed that the number of Americans filing for unemployment benefits declined last week. Initial jobless claims fell by 3,000 to a seasonally adjusted 209,000 for the week ended May 16, indicating resilience in the labour market.

Japan’s annual core inflation slowed to a four-year low in April. The country’s core consumer price index, which excludes fresh food prices, rose 1.4 per cent year-on-year, compared to 1.8 per cent in March and below market expectations of 1.7 per cent.

U.S. Treasury yields eased following reports of progress in the U.S.-Iran talks. The benchmark 10-year Treasury yield slipped 0.8 basis points to 4.575 per cent, while the 30-year bond yield fell nearly 2 basis points to 5.096 per cent. The two-year Treasury yield, however, edged up 2.3 basis points to 4.08 per cent.

Gold prices declined and were on track for a second consecutive weekly loss amid improving risk sentiment. Spot gold fell 0.2 per cent to USD 4,534.29 per ounce, while spot silver dropped 0.5 per cent to USD 76.32 per ounce.

Crude oil prices rose as investors remained cautious about the likelihood of a breakthrough in the U.S.-Iran negotiations. Brent crude futures gained 2.3 per cent to USD 104.96 per barrel, while U.S. West Texas Intermediate crude advanced 1.8 per cent to USD 98.08 per barrel.

The U.S. dollar hovered near a six-week high. The dollar index was marginally higher at 99.24 against a basket of major global currencies.

From a derivatives perspective, the Put-Call Ratio stood at 1.27, indicating a positive bias in the market.

On the Put side, significant open interest at the nearest out-of-the-money strike was concentrated at the 23,000 strike, followed by 23,500, suggesting these levels may act as immediate support zones.

On the Call side, notable open interest addition was seen at the 23,800 strike during the previous session, while the highest open interest among nearby out-of-the-money strikes was concentrated at 24,000, indicating strong resistance near that level.

Technically, Nifty 50 continues to trade within the 23,260–23,860 range. A decisive breakout above 23,860 could strengthen bullish momentum and trigger fresh buying interest.

Immediate resistance is placed in the 23,750–23,860 zone. On the downside, initial support is seen near 23,500, while a crucial support level is placed at 23,260. A break below this level may weaken the market structure and increase the possibility of Nifty 50 slipping below the 23,000 mark in the near term.

Among stocks to watch, GAIL (India) reported a 38.4 per cent year-on-year decline in Q4 profit to Rs 1,262.2 crore, while revenue fell 2.6 per cent. Aurobindo Pharma posted a 2 per cent rise in fourth-quarter profit to Rs 921.3 crore, with revenue increasing 5.6 per cent year-on-year.

LG Electronics India reported an 8.2 per cent decline in quarterly profit despite an 8.1 per cent rise in revenue. Nykaa parent FSN E-Commerce Ventures reported a 286.5 per cent surge in Q4 profit, while revenue rose 28.4 per cent year-on-year. Honasa Consumer posted a 177 per cent jump in fourth-quarter profit, while revenue increased 23.1 per cent.

SAIF Partners is likely to sell around 86 lakh shares in One 97 Communications through a block deal at a floor price of Rs 1,120.65 per share. Maruti Suzuki India announced a price hike of up to Rs 30,000 across vehicle models from June 2026 due to rising input costs.

Indian Overseas Bank approved fundraising plans of up to Rs 5,000 crore and issuance of Tier II bonds worth up to Rs 1,000 crore. Fino Payments Bank said Managing Director and CEO Rishi Gupta opted for early retirement, and the board approved interim leadership extensions.

Several companies are scheduled to announce their quarterly earnings on May 22, including ITC, Life Insurance Corporation of India, Sun Pharmaceutical Industries, Eicher Motors, Hindalco Industries, Colgate Palmolive (India), Fortis Healthcare, Info Edge (India), Narayana Hrudayalaya, NTPC Green Energy, Torrent Pharmaceuticals and Yatra Online.

SAIL and Kaynes Technologies remain under the futures and options ban list for May 22.

Foreign Institutional Investors were net sellers on May 20, offloading equities worth Rs 1,891.21 crore. Domestic Institutional Investors, however, remained net buyers with purchases worth Rs 2,492.42 crore.

The Indian stock market ended marginally lower on Thursday amid profit booking in select heavyweight stocks. The Sensex declined 135.03 points, or 0.18 per cent, to close at 75,183.36, while the Nifty 50 slipped 4.30 points, or 0.02 per cent, to settle at 23,654.70.

U.S. stock market indices ended modestly higher on Thursday amid optimism surrounding the U.S.-Iran negotiations. The Dow Jones Industrial Average rose 276.31 points, or 0.55 per cent, to close at a record high of 50,285.66. The S&P 500 gained 12.75 points, or 0.17 per cent, to 7,445.72, while the Nasdaq Composite advanced 22.74 points, or 0.09 per cent, to end at 26,293.10.

Among major stocks, Nvidia fell 1.77 per cent, Amazon gained 1.30 per cent, Microsoft slipped 0.47 per cent, Apple rose 0.91 per cent, IBM surged 12.4 per cent, and Tesla edged up 0.14 per cent.

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

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