Market WRAP: Strong recovery pushed Nifty near 18,400 levels; IT, energy and metals support the market

Adani Enterprises, TCS, and Reliance emerged as the top gainers from the Nifty 50 stocks

Market update at 3.30 PM: In a strongly volatile market, strong short covering rally towards the end pushed Nifty near 18,400 levels. The benchmark index closed 0.19 per cent lower while Sensex slipped 100 points. Nifty Midcap and Nifty Smallcap plunged 0.25 per cent and 0.44 per cent respectively.   

IT, energy and metals witnessed strong short covering rally in the end and closed positively. Meanwhile, realty, media and auto remained weak.   

Adani Enterprises, TCS, and Reliance emerged as the top gainers from the Nifty 50 stocks while SBI Life Insurance, Eicher Motors and UPL were the top losers.   

Nifty formed a bullish hammer on the technical chart which is a positive sign. The global cues shall continue to be in focus to anticipate further trend. 

Market update at 11.15 AM: In a surprising policy change from Bank of Japan, the Japanese central bank has widened yield target range while holding its super-low benchmark interest rates steady. This has led to a sharp rise of Japanese Yen against the other currencies. The Rupee has plunged against the US Dollar by nearly 20 paise and trades at Rs 82.8650 per USD.  

NSE Nifty 50 index has slipped 1 per cent to trade at 18,200 levels while Sensex has tanked 600 points so far. Nifty Midcap and Nifty Smallcap also slipped nearly 1 per cent.   

All the sectoral indices have slipped over 1 per cent, with realty, media and PSU Banks being the worst affected sector. India VIX has surged over 9 per cent.  

About 658 stocks are advancing while 1,280 stocks are declining and indicate weak market breadth.   

18,200 holds strong support for Nifty and any fall below this level can trigger fresh short positions.   

Market update at 9.30 AM: Indices have been trading lower at the start of the session. NSE Nifty 50 has plunged 0.80 per cent to fall below 18,300 levels while S&P BSE Sensex has tanked over 500 points. Midcap and Smallcap indices are also trading on a weak note.  

All the sectors are trading in red and India VIX has surged nearly 5 per cent.

Pre-market update: The Wall Street indices closed lower for fourth consecutive day as investors continue to remain fearful over the aggressive rate hikes by the Fed. The tech-heavy Nasdaq plunged 1.50 per cent while Dow Jones tanked 162 points. Most of the Asian markets have thus opened negatively and trends on SGX Nifty suggest a gap-down opening of about 40 points for Nifty.

Oil prices rose in the previous trading session amid relaxation of COVID norms in China. Brent crude trades above USD 80 per barrel.

In the last trading session, the FIIs sold to the tune of Rs 538 crore while the DIIs bought shares worth Rs 687 crore.

Nifty is expected to open around 18,400 and price action at this level shall be keenly watched by the traders.