Pre-Market Update: Sensex, Nifty 50 May Open Flat on May 26; BEL, Paytm, ONGC, Siemens in Focus Amid U.S.-Iran Tensions

Pre-Market Update at 7:42 AM: IThe Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a flat note on Tuesday, May 26, tracking mixed global cues and cautious investor sentiment amid ongoing U.S.-Iran peace negotiations.

Gift Nifty was trading near the 24,057 mark, a discount of nearly 41 points from the previous close of Nifty futures, indicating a muted start for domestic equities. Asian markets traded mixed in early deals, while U.S. stock futures edged higher after Wall Street remained shut on Monday due to the Memorial Day holiday. Investor sentiment remained cautious amid geopolitical uncertainty, volatility in crude oil prices, and expectations around the monthly F&O expiry session.

The United States carried out what it described as “self-defense” strikes on Iran, targeting missile launch sites and boats allegedly involved in laying naval mines. According to the U.S. Central Command, the action was aimed at protecting American troops while maintaining restraint amid ongoing ceasefire discussions. The developments have kept global investors on edge and added uncertainty to commodity markets.

U.S. Treasury yields eased after stabilising from last week’s sharp selloff. The yield on the 10-year U.S. Treasury note slipped to 4.5024 per cent, while the two-year yield stood at 4.0612 per cent.

Crude oil prices rebounded following reports of fresh military action involving Iran. Brent crude futures rose 1.5 per cent to USD 97.56 per barrel after tumbling 7 per cent in the previous session. U.S. West Texas Intermediate crude traded at USD 91.25 per barrel. Higher crude oil prices remain a concern for India due to their impact on inflation and import costs.

Gold prices declined as rising oil prices increased concerns over inflation and the possibility of interest rates staying elevated for longer. Spot gold fell 0.6 per cent to USD 4,544.33 per ounce, while spot silver slipped 0.8 per cent to USD 77.42 per ounce. Meanwhile, the U.S. dollar index remained under pressure and traded at 99.031 amid optimism surrounding a potential U.S.-Iran peace agreement.

From the derivatives perspective, the Put-Call Ratio stood at 1.29, indicating a mildly bullish undertone. On the Put side, the highest open interest addition was seen at the 24,000 strike, suggesting strong support around that level. On the Call side, the highest open interest among the nearest out-of-the-money strikes was concentrated at 24,500, indicating immediate resistance.

For Tuesday’s session, the 23,850–23,900 zone is expected to act as immediate support for the Nifty 50, while stronger support is placed near 23,262. On the upside, the index may face resistance in the 23,997–24,127 gap-down zone. A sustained move above 24,127 could trigger further upside towards 24,450–24,460. Market participants will closely watch whether the index manages to hold above its breakout zone and sustain strength above its 20-DMA and 50-DMA during the monthly derivatives expiry session.

Several companies are scheduled to announce quarterly earnings on May 26, including Oil and Natural Gas Corporation, Siemens, Brainbees Solutions, AstraZeneca Pharma India, Carraro India, EIH, Finolex Industries, Gujarat Fluorochemicals, Gandhar Oil Refinery (India), General Insurance Corporation of India, Indian Railway Catering and Tourism Corporation, JK Tyre & Industries, Apeejay Surrendra Park Hotels, Procter & Gamble Health, and Senco Gold.

For Tuesday’s trading session, Steel Authority of India (SAIL) remains under the F&O ban list.

On May 25, Foreign Institutional Investors (FIIs) were net buyers of Indian equities worth Rs 821.75 crore. Domestic Institutional Investors (DIIs) also remained buyers, purchasing shares worth Rs 3,856.88 crore.

Indian equity benchmarks rallied sharply on Monday amid broad-based buying interest. The Sensex surged 1,073.61 points, or 1.42 per cent, to close at 76,488.96, while the Nifty 50 advanced 312.40 points, or 1.32 per cent, to settle at 24,031.70.

Meanwhile, U.S. stock futures traded higher on Tuesday morning. Dow Jones futures gained 0.73 per cent, S&P 500 futures rose 0.78 per cent, and Nasdaq-100 futures climbed 1.14 per cent.

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

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