Blood Bath on D-Street; Nifty cracked 1.49 per cent as all sectors end in red

 In the commodities market, the precious metals Gold and Silver rallied 1.6 per cent and 2 per cent respectively. 

Market update at 3.30 PM: Panic selloff has been seen across all sectors, with major losses led by banking and auto stocks in the afternoon session. NSE Nifty 50 index cracked more than 260 points which is around 1.51 per cent. It recovered 40 points from day’s low but still closed below 17,200 level while S&P BSE Sensex tanked 897 points. Nifty Midcap and Nifty Smallcap plunged 2 per cent and 2.23 per cent respectively.     

In the commodities market, the precious metals Gold and Silver rallied 1.6 per cent and 2 per cent respectively.  

India VIX surged nearly 22 per cent and Nifty PCR for weekly expiry came to oversold region around 0.706.  

Tech Mahindra emerged as the top gainer from the Nifty 50 stocks while IndusInd bank, SBI, Tata Motors were the top losers.     

Nifty formed a bearish candle by making a lower low on the technical chart and signals weakness from current levels. It breached 17,300 support level which is protected from last few days, which is strongly negative. Meanwhile, global cues shall be in focus.

Market update at 12.45 PM: Indices have witnessed strong selling pressure and are currently trading at their day’s low. NSE Nifty 50 index has slipped 0.75 per cent to trade below 17,300 levels while Sensex has tanked over 400 points. Nifty Midcap and Nifty Smallcap have plummeted 1.34 per cent and 1.50 per cent respectively.   

Media stocks, along with auto and banks have seen strong profit booking and are the top draggers in the market. With such negativity, India VIX has surged over 10 per cent.   

Market update at 11.10 AM: Indices have been trading on a mixed note amid strong volatility. NSE Nifty 50 index has slipped over 120 points from day’s high to trade at 17,400 levels while S&P BSE Sensex is down 100 points. Nifty Midcap and Nifty Smallcap have plunged over a per cent each.   

Energy and metals are trading higher whereas Auto and pharma stocks have taken a hit.   

About 567 stocks are advancing as against 1429 stocks that are declining, thus showing bearish sentiment in the market.  

IndusInd Bank, Infosys and M&M are the top losers from the Nifty 50 stocks currently while Tech Mahindra, ICICI Bank and Adani Enterprises are holding on to their gains. 

Market update at 9.30 AM: Indices have been trading higher at the start of the session. NSE Nifty 50 index has jumped 0.62 per cent to trade above 17,500 levels while S&P BSE Sensex has climbed over 350 points. Strong buying interest is seen across the broader market as well.   

Except for auto index, all other sectoral indices are trading in green. India VIX trades marginally lower by half a per cent. 

Pre-market update:  The US Market slipped on Friday trading session where Dow Jones Industrial Average closed around 31,783 with a fall of more than 1 per cent. Tech-heavy Nasdaq 100 slipped near to 1.4 per cent to close at the 11,830 level.  

Last week US market melted 1481 points steeply because of crisis in SVB Financials Group who have been primary lenders of the startups in US. It tanked around 60 per cent in one day after they sold their bonds in a loss of around 2 billion dollars and then started to raise that much amount to recover it. Now the bank's funds are currently in the hands of the Federal Deposit Insurance Corporation. On Friday, they started to find buyers and the street talk on weekend is that Twitter is open for conversation to buy it, which suggests that the stock may remain in the news for the next week as well. 

This event triggered a sell-off in global markets and Nifty also cracked 181 points which is around 1 per cent in last week. On Friday, nifty opened with a gap on down side because of global weakness and recovered around 90 points from day's low. Where FIIs sold 2061.47 crore where as usual DIIs supported the markets by buying of 1350.13 crore in domestic markets. As per the OI Data, FIIs unwinded their longs with adding some shorts with this index long percentage came to 16.16 per cent i.e. near to oversold region. This indicates pessimism because of global bearish sentiments. 

DIIs added longs with adding some shorts as well but no clear direction from PROs and Clients as per OI Data. 

Also highlighting one interesting activity in Sequent Scientific (NSE ScripCode : SEQUENT), after a multi months downtrend stock rallied around 28 per cent in last 2 trading sessions cause of some bulk deals led by GRAVITON RESEARCH CAPITAL LLP and QE SECURITIES. 

SGX Nifty indicates that Nifty is likely to open gap down. It would be interesting to watch the important level of 17,300 and 17,465 closely.

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