Closing bell: Nifty ends flat after gap up opening; Realty, Metal surge more than 2 per cent

 Realty and Metal sectors were the star performers in today’s session. Meanwhile, Pharma, Auto and Media remained weak throughout the day.

Market update at 3.30 PM: Indices saw a strong short covering rally towards the end as Nifty surged 0.67 per cent to close at 17100 level while S&P BSE Sensex gained 355 points. Nifty jumped about 135 points in the afternoon session. Nifty Midcap 100 and Nifty Smallcap 100 rose 0.32 per cent and 0.69 per cent respectively.     

Nifty weekly PCR is still in oversold zone (0.87).   

Realty and Metal sectors were the star performers in today’s session. Meanwhile, Pharma, Auto and Media remained weak throughout the day.      

HCL Tech, Hindalco and UPL emerged as the top gainers amongst Nifty 50 stocks while Eicher Motors, ITC, NTPC were the top losers.    

Nifty closed near to technical breakout level, which is a positive sign for the bulls. Meanwhile, the immediate resistance is at 17,150 level and shall be closely watched in upcoming trading sessions. 

Market update at 11.30 AM: Indices have witnessed profit booking at higher levels and are off their day’s high. NSE Nifty 50 index has slipped about 120 points from its day’s high and currently trades just above 17,000 level. S&P BSE Sensex has gained 100 points so far while Nifty Midcap and Nifty Smallcap have jumped 0.36 per cent and per 0.62 cent respectively.   

Realty, IT and metal indices are the top performers and are supporting the market. Meanwhile, media and PSU Bank stocks remain under pressure.

About 1386 stocks are advancing as against 590 stocks that are declining, thus indicating strong buying activity across the broader market.  

HCL Technologies, Infosys and Nestle India are the top gainers from the Nifty 50 stocks while ITC, BPCL and Eicher Motors are weak today.   

17,000 level holds a crucial support for Nifty and slippage below this level can create fresh short positions. 

Market update at 9.30 AM: Indices have opened gap-up amid positive global cues. NSE Nifty 50 index has surged three quarteres of a per cent to trade above 17,100 level while S&P Sensex has gained nearly 500 points. Strong buying interest is seen across midcap and Smallcap stocks as well.  

Metals and IT have seen strong buying interest while media stocks have witnessed slight profit booking after last session’s rally. India VIX has crashed over 6 per cent.  

Pre-market update: 11 US banks came together to rescue First Republic Bank (FRC), ready to deposit 30 billion dollars as a part of rescue package. 

Thus, Dow Jones Industrial Average rallied 371 points or 1.17 per cent and closed around 32,246 level. Nasdaq 100 also surged 2.67 per cent up to closed around the 12,581 level. Meanwhile CBOE VIX cooled off nearly 12 per cent.  

In the global commodities market, Gold and Silver remained steady in the small range for the day and closed in its previous 4 day’s consolidation zone.  

WTI Crude recovered from day’s low and closed around the opening levels of $68.2. 

Yesterday in Indian markets, after a slight gap up opening, sharp profit booking was witnessed in the first hour of the trading session because of sell off in Metal and IT sector. It is where the bulls took charge and markets bounced with major gains led by Banks and financials. Thus, NSE Nifty 50 index recovered about 135 points to close at 16,985 level. This volatile action formed dragon fly doji candle on daily charts. 

In domestic market, FIIs sold shares worth Rs 282.06 crore and DIIs bought shares worth Rs 2051.45 crore. 

As per the OI Data, Clients & DIIs added longs aggressively in the bearish falling markets from last 3 consecutive days.  00

Pros covered shorts, on other hand FIIs added notable shorts in index.  

Now FIIs index longs came to 11.27 per cent which indicates FIIs confidence on Indian markets is now lower than pandemic times of Covid-19. 

Dow futures are now trading flat. SGX Nifty indicates, Nifty is likely to open 100 points gap up. Follow up buying can be seen if we sustain this gap up.  

Bulls may remain in action till the 16,850-level protected on down side.