Opening Bell: Nifty 50, Sensex Rise Over 0.6% on Hopes of U.S.-Iran Peace Deal

Market Update at 09:35 AM: Indian equity benchmark indices opened higher on Thursday, tracking gains in global markets amid optimism over easing geopolitical tensions between the U.S. and Iran.

At around 9:17 AM, the Nifty 50 was trading 154 points, or 0.65 per cent, higher at 23,808.4, while the Sensex gained 498.49 points, or 0.66 per cent, to 75,674.11.

The rally was supported by positive sentiment across broader markets as well. The Nifty MidCap index advanced 0.89 per cent, while the Nifty SmallCap index climbed 0.99 per cent during early trade.

Among sectoral indices, the Nifty Cement and Nifty Realty sectors emerged as the Top Gainers. Buying interest was also visible in the Nifty Media and Nifty PSU Bank indices. However, the Nifty IT index underperformed compared to the broader market.

Investor sentiment improved after U.S. President Donald Trump said his administration was in the final stage of negotiations with Iran, according to a White House Pool report. The development raised hopes of reduced geopolitical tensions in West Asia and eased concerns over potential disruptions in global energy supplies.

Global equities also traded firm following the comments, supporting risk appetite across Asian markets, including India.

Pre-Market Update at 7:48 AM: The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Thursday, May 21, supported by strong global cues. Investor sentiment improved after U.S. President Donald Trump said negotiations with Iran are in the final stages, raising hopes of easing geopolitical tensions.

A sharp decline in U.S. Treasury yields and Japanese government bond yields, along with blockbuster quarterly earnings from NVIDIA, also boosted market sentiment globally. Trend in the Gift Nifty indicates a gap-up start for domestic equities. Gift Nifty was trading around the 23,812 level, up 167 points compared to the previous close of Nifty futures.

Asian markets advanced, while Wall Street rallied overnight, with all three major U.S. benchmark indices gaining more than 1 per cent amid optimism surrounding a possible de-escalation in the U.S.-Iran conflict.

U.S. President Donald Trump stated that negotiations with Iran are nearing completion, although he warned that further attacks remain possible if Tehran does not agree to a deal. Iran also cautioned against renewed military action, keeping geopolitical risks alive.

Minutes from the U.S. Federal Reserve’s April policy meeting showed that most policymakers believe additional tightening may be needed if inflation remains above the Fed’s 2 per cent target.

NVIDIA reported strong first-quarter earnings, with net profit surging to USD 58.3 billion, or USD 2.39 per share, compared to USD 18.8 billion a year earlier. Revenue jumped 85 per cent year-on-year to a record USD 81.62 billion. The company also announced an USD 80 billion share buyback programme.

U.S. Treasury yields declined sharply after optimism emerged over a potential U.S.-Iran peace agreement. The benchmark 10-year Treasury yield fell 9.4 basis points to 4.576 per cent.

Japanese government bond yields also eased for the second straight session. The 10-year Japanese government bond yield declined 3.5 basis points to 2.750 per cent, while the 30-year yield dropped 8.5 basis points to 4.015 per cent.

The U.S. dollar traded below a six-week high. The dollar index remained largely unchanged at 99.128.

Gold prices stayed range-bound amid hopes of easing geopolitical tensions. Spot gold was nearly unchanged at USD 4,543.96 per ounce, while silver prices remained steady at USD 75.96 per ounce.

Crude oil prices rebounded after two consecutive sessions of decline. Brent crude futures rose 0.45 per cent to USD 105.49 per barrel, while U.S. WTI crude traded near the USD 99 mark.

From a derivatives perspective, the Put-Call Ratio (PCR) stands at 1.27. On the Put side, significant open interest at the nearest out-of-the-money strike was concentrated at 23,500, followed by 23,400, indicating these levels are likely to act as support for the day. Fresh open interest addition was also seen at 23,400 and 23,500 strikes.

On the Call side, significant open interest addition during the previous session was observed at the 24,500 strike. The highest open interest at the nearest out-of-the-money strike was concentrated at 24,000, indicating immediate resistance near that level.

The Nifty 50 continues to trade within a broad consolidation range of 23,262 to 23,860. Immediate support is placed near 23,500, followed by the day’s low of 23,397. As long as the index sustains above these levels, it may attempt to move towards the upper end of the range.

On the upside, the 50-day moving average near 23,659 remains a key hurdle. A decisive close above 23,860 would confirm a bullish breakout and potentially resume the uptrend. Beyond that, the 20-day moving average near 23,928 could act as the next resistance zone. Until a breakout occurs on either side, traders are likely to witness range-bound movement.

Several major companies are scheduled to announce quarterly earnings on May 21, including ITC, LG Electronics India, Life Insurance Corporation of India, FSN E-Commerce Ventures, Aurobindo Pharma, GAIL (India), Honasa Consumer, Dr Agarwals Health Care, Ashoka Buildcon, Bikaji Foods International, Emami, Engineers India, ICRA, JSW Cement, Max Healthcare Institute, Prestige Estates Projects, Rashtriya Chemicals and Fertilizers, Sun TV Network, VA Tech Wabag, Welspun Corp, and WeWork India Management.

For Thursday’s session, Steel Authority of India and Kaynes Technology India remain under the F&O ban list.

On May 20, Foreign Institutional Investors (FIIs) were net sellers and sold equities worth Rs 1,597.35 crore. Domestic Institutional Investors (DIIs) bought shares worth Rs 1,968.35 crore during the same session.

The Indian stock market ended marginally higher on Wednesday, supported by gains in select index heavyweights. The Sensex gained 117.54 points, or 0.16 per cent, to close at 75,318.39, while the Nifty 50 rose 41 points, or 0.17 per cent, to settle at 23,659.

Wall Street rebounded sharply on Wednesday after three consecutive sessions of losses, led by Semiconductor and technology stocks.

The Dow Jones Industrial Average jumped 645.47 points, or 1.31 per cent, to close at 50,009.35. The S&P 500 climbed 79.36 points, or 1.08 per cent, to 7,432.97, while the Nasdaq Composite surged 399.65 points, or 1.55 per cent, to end at 26,270.36.

Technology and chip stocks led the gains. NVIDIA rose 1.30 per cent, while Advanced Micro Devices rallied 8.10 per cent. Microsoft gained 0.87 per cent, Amazon advanced 2.19 per cent, and Apple added 1.10 per cent. Intel surged 7.36 per cent, while Micron Technology climbed 4.76 per cent. Tesla also gained 3.25 per cent.

Airline stocks witnessed strong buying interest, with Delta Air Lines, United Airlines, Southwest Airlines, and Alaska Air Group rising between 6 per cent and 10 per cent.

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

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