Pre-Market Update: Sensex, Nifty 50 likely to open cautious on May 29 amid U.S.-Iran ceasefire talks; Wipro, Swiggy, RITES in focus

Pre-Market Update at 7:45 AM: Indian stock market benchmark indices Sensex and Nifty 50 are expected to open on a cautious note on Friday, May 29, as investors closely monitor developments surrounding the U.S.-Iran peace negotiations and global macroeconomic signals.

Gift Nifty was trading near the 23,889 mark, a premium of around 16 points over the previous close of Nifty futures, indicating a muted start for domestic equities. Asian markets traded higher, while Wall Street ended in positive territory overnight, with the S&P 500 and Nasdaq Composite hitting record closing highs.

Investor sentiment remained guarded after reports suggested that the U.S. and Iran are working on a draft agreement to extend the ceasefire by 60 days. However, U.S. Vice President JD Vance reportedly said the two countries were “close” to finalising a deal, but discussions were still ongoing.

U.S. inflation accelerated at its fastest pace in three years in April, largely due to elevated energy prices. The Personal Consumption Expenditures (PCE) Price Index rose 3.8 per cent year-on-year in April, compared to 3.5 per cent in March. On a monthly basis, inflation increased 0.4 per cent after a 0.7 per cent rise in the previous month.

According to media reports, negotiators from the U.S. and Iran moved closer to an agreement aimed at extending the fragile ceasefire by 60 days. The proposed deal reportedly includes unrestricted shipping through the Strait of Hormuz, removal of Iranian naval mines within 30 days, and lifting of the U.S. naval blockade after commercial traffic normalises.

Fresh unemployment benefit claims in the U.S. increased slightly last week. Initial jobless claims rose by 5,000 to 215,000 for the week ended May 23, above market estimates of 211,000. Claims have largely remained in the 190,000 to 230,000 range so far this year.

Crude oil prices declined amid optimism over a possible extension of the U.S.-Iran ceasefire. Brent crude futures for August delivery fell 0.50 per cent to USD 92.24 per barrel, while U.S. WTI crude dropped 0.71 per cent to USD 88.27 per barrel. Oil prices have fallen more than 8 per cent this week.

Gold prices edged higher as investors assessed geopolitical developments. Spot gold rose 0.4 per cent to USD 4,512.79 per ounce, while spot silver gained 0.7 per cent to USD 76.17 per ounce.

The U.S. dollar remained weak against major global currencies. The dollar index was largely unchanged at 98.997 but was on track for a weekly decline of 0.3 per cent. The euro traded at USD 1.1653, while the Japanese yen strengthened to 159.27 per dollar.

Derivatives data for the June series expiry indicated that the Put-Call Ratio (PCR) stood at 0.85. On the Put side, significant open interest concentration was seen at the 23,900 strike, suggesting strong support at those levels. On the Call side, the highest open interest addition was recorded at the 24,000 strike, indicating immediate resistance for the index.

Technically, Nifty 50 continues to hold above its crucial short-term support zone of 23,800 to 23,865, which includes the 20-day moving average, recent breakout area and May 25 gap zone. A sustained move below this range could weaken the near-term structure and drag the index towards 23,684, where the 50-day moving average is placed, followed by the next major support near 23,400.

On the upside, the 24,000 level remains a crucial hurdle. A decisive close above this mark may improve market sentiment and open the path towards 24,126 and 24,200 levels.

Companies scheduled to announce quarterly earnings on May 30 include Ahluwalia Contracts (India), Linde India, PTC Industries, Som Distilleries & Breweries, Suraj Estate Developers, Suraj Industries, Titagarh Rail Systems, TTK Healthcare, Uflex and Veranda Learning Solutions.

No stock has been placed under the futures and options (F&O) ban for May 29.

Foreign Institutional Investors (FIIs) remained net sellers on May 27, selling equities worth Rs 1,042.70 crore. Domestic Institutional Investors (DIIs), however, purchased shares worth Rs 3,821 crore.

Indian benchmark indices ended marginally lower on Wednesday, marking their second consecutive session of losses due to weakness in heavyweight Banking stocks including HDFC Bank and ICICI Bank. The Sensex declined 142 points, or 0.19 per cent, to close at 75,867.80, while the Nifty 50 slipped 7 points, or 0.03 per cent, to settle at 23,907.15.

U.S. stock markets ended higher on Thursday after reports of progress in the U.S.-Iran peace negotiations boosted investor confidence. The Dow Jones Industrial Average rose 24.69 points, or 0.05 per cent, to close at 50,668.97. The S&P 500 gained 0.58 per cent to end at 7,563.63, while the Nasdaq Composite surged 0.91 per cent to settle at 26,917.47.

Among major technology stocks, Nvidia rose 0.78 per cent, AMD rallied 4.55 per cent, Microsoft gained 3.47 per cent, Apple added 0.53 per cent and Marvell Technology climbed 3.09 per cent. Tesla shares also ended 0.40 per cent higher.

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

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