Nifty 50, Sensex Outlook: How Will Indian Stock Market Perform On May 22?

Stock Market Outlook: The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Friday, tracking gains in global markets, amid hopes of a US-Iran peace deal.

The Indian benchmark stock market bourses, Nifty 50 and Sensex, are expected to ring in green. on Friday's trading session, following gains in the global market amid hopes of a US-Iran deal that'll put an end to the Middle East crisis.

The trends on Gift Nifty also signal a positive start for the Indian benchmark indices. Gift Nifty was trading nearly 23,657 level, a premium of approximately 26 points from the Nifty futures’ last close.

On Thursday's trading session, the Indian stock market ended lower amid profit booking in selective index heavyweights.

The Sensex declined 0.18% ending at 75,183.36, while the Nifty 50 closed 0.02% lower at 23,654.70.

Nifty 50 Outlook

As per RS Wealth Management, “Nifty is expected to trade initially in a range 23625 to 23720. Trading below 24100 is a negative signal. The Nifty 50 closed near 23,655 and continues to exhibit a fragile undertone as selling pressure at higher levels persists.”

'Technically, the index erased all its opening gains and formed a long bearish candle on the daily chart, highlighting weak sentiment near resistance zones despite the broader higher-low structure remaining intact," it said. 

The index failed to sustain above short-term moving averages and continues to trade below all major EMAs, including the 10, 20, 50, 100, and 200-day averages, indicating that the broader trend remains under pressure.

Also Read: Right Moment To Let Rupee Depreciate: Finance Commission Chair To RBI

Sensex Outlook

On 21st May 2026, the BSE Sensex ended at 75,183.36, slipping 135.03 points (-0.18%) after witnessing sharp intraday volatility. The index opened with a strong gap-up of nearly 414 points and surged to an intraday high of 75,945.79 during early trade, but the momentum faded as persistent selling pressure emerged at elevated levels.

"Gradual profit-booking dragged the index lower towards an intraday low of 74,996.78 before settling near the 75,180 mark, reflecting cautious market sentiment and limited buying conviction at higher zones, it noted. 

“A sustained breakout above resistance could revive bullish momentum, whereas weakness below support may intensify short-term selling pressure. Overall, the market structure remains range-bound with stock-specific action dominating the trend, as traders maintain a cautious stance amid global uncertainties and intermittent profit-booking at higher levels,” it added. 

India VIX

India VIX, often referred to as the market’s fear gauge, extended its decline for the third consecutive session, falling 3.35% to 17.82 and remaining below its short- and medium-term moving averages.