Some buying towards the end of the day on May 10 lifted benchmark indices higher but the nervousness over US inflation data that will set the tone for the next FOMC meeting was apparent on Dalal Street.
Some buying was seen in private banks, auto and realty – all of which are interest rate-sensitive sectors. PSU banks continued to see selling that has intensified over the last few days.
The Nifty 50 index closed at 18,315.10, rising 49.15 points or 0.27 percent. BSE flagship Sensex advanced 178.87 points or 0.29 percent to 61,940.20.
“The domestic market traded near the flatline, oscillating between gains and losses as investors refrained from taking a firm direction due to the uncertainties surrounding the US market,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Globally, investors exercised caution in anticipation of US inflation data and a meeting between US political leaders to discuss fiscal concerns. Oil prices edged lower as industry data revealed a surprise surge in US crude stock, indicating a potential weakness in demand.”
Stocks and sectors
Among the Nifty 50 stocks, the biggest gainer was IndusInd Bank that climbed nearly 3 percent. HDFC Life Insurance, Power Grid and Tata Motors were also among top gainers.
UPL continued to lose momentum as the stock fell 2 percent. Dr Reddy’s Labs, Infosys and Hindalco Industries were other top losers.
| Index | Prices | Change | Change% |
|---|---|---|---|
| 61,940.20 | 178.87 | +0.29% | |
| Nifty 50 | 18,315.10 | 49.15 | +0.27% |
| Nifty Bank | 43,331.05 | 132.90 | +0.31% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| IndusInd Bank | 1,172.55 | 31.95 | +2.80% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| UPL | 679.70 | -14.70 | -2.12% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Auto | 13750.90 | 102.40 | +0.75% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty PSU Bank | 3959.30 | -42.50 | -1.06% |
In the broader market, Nifty Midcap 100 closed up 0.05 percent while Nifty Smallcap rose 0.14 percent. Nifty 500, the broadest index, added 0.29 percent.
OUTLOOK for May 10
Ajit Mishra, VP - Technical Research, Religare Broking
Markets consolidated for yet another session and ended marginally higher. After the initial uptick, Nifty hovered in a narrow range and finally settled at 18,315.10 levels. It was a muted session on the sectoral front too however selective buying in realty, energy and auto kept the traders busy. The broader indices also traded lackluster and ended almost unchanged.
We are seeing a healthy consolidation and expect the resumption of the uptrend soon. Traders should continue with the “buy on dips” approach till 18,050 is intact in Nifty. However, one should maintain caution in stock selection now as we’re seeing a mixed trend within sectors.
Osho Krishan, Sr. Analyst, Technical & Derivative Research, Angel One
The market seemed to be a bit timid as a strong follow up buying is missing at the current juncture. However, the chart structure remains robust as the index is firmly withheld to the upper band of the consolidation zone. As far as levels are concerned, the 18250-18200 zone is expected to cushion any short-term blip, while the sacrosanct support lies around the 18100-18000 mark. On the flip side, the 18500 is very much in the vicinity and is highly anticipated to be tested soon. Besides the technical data, one needs to stay abreast with the ongoing domestic developments over the state election, which is likely to impact the near-term trend. Simultaneously, one must keep a close tab on the mentioned levels and continue with the stock-specific approach for better trading opportunities.
Rupak De, Senior Technical Analyst at LKP Securities
The Nifty experienced a period of volatility, trading between a range of 18,211 and 11,326 before closing in positive territory. The next strong resistance level for the Nifty is expected to be in the range of 18,400 to 18,500. However, the overall trend remains positive, indicating that there is an overall upward bias in the market. Therefore, despite potential resistance levels, the market is still expected to move in an upward direction as long as it sustains above 18200.