Indices end on a higher note; India VIX crashes 6 per cent!

Coal India, Maruti Suzuki, and IndusInd Bank emerged as the top gainers whereas, ONGC, Sun Pharma & ITC remained weak today. 

Market update at 3.30 PM: It has been a magnificent day for the Indian indices as Nifty closed about 1.14 per cent higher while Sensex gained about 657 points. Moreover, buying also emerged in the broader market as Nifty Midcap and Nifty Smallcap are up by 1.14 per cent & 0.41 per cent respectively.  With such positivity, India VIX crashed ver 6 per cent.

Apart from PSU banks, all other sectors ended in the green. Coal India, Maruti Suzuki, and IndusInd Bank emerged as the top gainers whereas, ONGC, Sun Pharma & ITC remained weak today. 

With such positivity, calls at 17,500 have been covered. Now, 17,700 and 18,000 have the highest open interest on the call side while 17,400 happen to have the highest open interest on the put side. Moreover, open interest at 17,400 put option has been added in huge quantity, which suggests that 17,400 can be good support for this weekly expiry. 

Market update at 1 PM: Indices are firmly trading in green. Nifty climbed about 0.9 per cent and is currently, trading near the day’s high. Meanwhile, Sensex has gained over 500 points. It is a broad-based rally as Nifty Midcap and Nifty Smallcap have gained about 1.01 per cent & 0.35 per cent, respectively.  

All the sectoral indices are trading in green except for Nifty PSU Bank, which is down by about 0.8 per cent. Nifty Bank, Nifty Auto, and Nifty IT have gained over a per cent each.   

The 17,400 put option is aggressively sold due to the ongoing bullishness. The maximum call unwinding has taken place at 17,300. However, 17,500 continues to hold maximum open interest.   

Market update at 10.45 AM: Indian indices have been trading higher on Wednesday morning. Nifty has surged over 0.80 per cent and is trading above 17,400 while Sensex gained nearly 500 points. The broader markets are also trading in green.  

The prominent sectors supporting the market include banks, auto, IT, and media, whose sectoral indices are trading above a per cent each.   

Coal India, Bajaj Auto, and HCL Technologies are the top gainers among Nifty stocks while the ones that are weak today are IOC, BPCL & Sun Pharma.  

With such bullishness, the 17,400 put option has been aggressively sold off while the 17,500 call option is unwound. Moreover, 17,400 straddles have been created in the view that Nifty will trade near 17,400 for some more time.   

Pre-market update: Last night, the US markets ended firmly in green. Both NASDAQ and Dow Jones ended over a per cent higher. This has brought positivity among the Asian markets and most of them opened positive on Wednesday morning. SGX Nifty indicates a 50-point higher opening of Nifty.
In the last trading session, the FIIs have sold for about Rs 1,967 crore while the DIIs bought about Rs 1,115 crore worth of equity.
Crude oil has slipped about 1.5 per cent early Wednesday morning while the precious metals are trading higher.
After dismal performance from the HDFC group of stocks, the focus would be on them throughout the day.
Nifty is likely to open above 17,300. The 17,200 is a strong support level while the resistance lies at 17,400. Nifty has managed to rise above 17,200 despite falling below it in the last two trading sessions. Any closing below 17,200 will bring more weakness.