FINAL TRADE: Nifty erases early gains, ends at 18,266 amid weak global cues

Reversing gains, the domestic stock market ended flat on May 9, 2023, as weak global cues weighed on investor sentiment. Global equities dipped on Tuesday as traders were kept on edge by weak Chinese trade data and the impasse over the US debt ceiling. China's imports contracted sharply in April, while exports rose at a slower pace, reinforcing signs of feeble domestic demand despite the lifting of COVID curbs and heaping pressure on an economy already struggling in the face of cooling global growth, Reuters reported. Besides, market participants were also anxious ahead of US inflation data due to be released Wednesday.

The Nifty50 index, which hit a high of 18,344.20 during the trade, ended at 18,265.95. The S&P BSE Sensex settled the session at 61,761.33, down 3 points. ITC  (down nearly 2 per cent) was the biggest laggard on the 30-share index of the BSE, followed by SBI and Bajaj Finance. On the contrary, IndusInd Bank (up 1 per cent) was the top gainer, followed by Axis Bank, and TCS. Sectorally, most indices ended in the red. Utilities fell the most - down over 1 per cent, followed by realty and power stocks. However, technology, telecommunication, and auto stocks gained in the trade. 

"The domestic market relinquished its gains as weak global sentiments took hold. The upcoming US inflation figures have become the focal point in determining the global market trend. The US inflation rate, which is expected to remain unchanged at its March level of 5.0 per cent, is causing worries that the Fed will remain stricter for long. However, the sustained support from FIIs is guarding the domestic market against a steep correction," said Vinod Nair, Head of Research at Geojit Financial Services.

EXPERT TAKE

"Technically, there have been no significant changes from the last trading session, as we allude to the previous commentary of Nifty’s placement at the sturdy hurdle of 18,250-18,300, which needs to be surpassed for the continuation of the uptrend. As far as levels are concerned, a decisive closure beyond the mentioned range could only trigger fresh longs in the system. Whereas on the downside, 18,200-18,150 is likely to provide a cushion from any intraday blip," notes Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One.

Krishan further said they remain sanguine on the market with a bullish undertone. Also, one needs to keep a close tab on the mentioned levels and utilise declines to add "long" to the system. Simultaneously, individual pockets are comparatively performing well, and traders need to focus on the stock-specific approach to gauge trading opportunities, the analyst added.