Nifty and Sensex close higher in a volatile trading session, IT and PSU Banks dominate

Bajaj Finance, Adani Enterprises and Bajaj Finserv were the top gainers from the Nifty 50 stocks

Market update at 3.30 PM: Indices had a rollercoaster ride on Monday as sell off in energy and FMCG was offset by gains in IT and PSU Banks. NSE Nifty 50 index recovered over 100 points towards the last half hour of the session and gained 0.25 per cent to close above 17,600 level. S&P BSE Sensex rose 170 points while Nifty Midcap and Nifty Smallcap closed on a flat note.   

Nifty IT was the star performer on Monday as it jumped over a per cent while energy and power stocks were weak. India VIX surged over 2 per cent on a volatile trading session.   

Bajaj Finance, Adani Enterprises and Bajaj Finserv were the top gainers from the Nifty 50 stocks while Powergrid Corporation, Bajaj Auto and IndusInd Bank were the top losers.   

Nifty formed a bullish candle with a long wick on the technical chart and thus signals buying interest at lower levels. The level of 17,400 has emerged as a strong support and shall be a key level to watch out for in the upcoming trading sessions.  

Market update at 11 AM: Indices have been trading on a lower note in a strongly volatile trading session. The Adani shares had hit the upper circuit during the initial hour of the trading session amid strong short covering rally. Meanwhile, stock specific action continues on D-street as Bajaj Finance receives strong buying interest after good earning numbers.   

NSE Nifty 50 index has slipped 0.31 per cent to trade at 17,550 level while S&P BSE Sensex has lost 125 points. Nifty Midcap has plunged 0.35 per cent while Nifty Smallcap trades on a flat note.   

Pharma and IT are the top performers while energy and banks are dragging the market. With this, India VIX has surged over 6 per cent.   

About 883 stocks are advancing as against 1105 stocks that are declining, thus indicating weak market breadth. 

Market update at 9.30 AM: Indices have been trading higher in a strongly volatile session. NSE Nifty 50 index has jumped half a per cent to trade above 17,600 level while S&P BSE Sensex has soared over 200 points. Stocks specific action is seen across the broader market.

Adani stocks are trading in green amid strong short covering rally. PSU Banks and metal sector are the top performers

Pre-market update: The domestic market witnessed one of the worst sell-off past week as sentiment turned sour amid upcoming budget and Hindenburg allegations on Adani. The Asian markets have opened cautiously in what can be said as a strongly volatile week with the upcoming US Fed rate decision and US jobs data. Trends on SGX Nifty indicate a minor gain of 15 points.

In its response, the Adani group has issued a 413-page statement on Hindenburg allegations of fraud.

Bajaj Finance results: The NBFC major reported a jump of 40 per cent YoY in net profit to Rs 2973 crore which is in line with market expectations. The stock is likely to be in focus along with L&T, Tech Mahindra, Bajaj Finserv which are set to declare results today.

Equity mutual funds are set to adopt T+2 redemption cycle from February 1. 

FIIs have pulled out over Rs 17000 crore ahead of the budget and it has become a major concern for the Indian equity market.

Nifty is expected to open around 17,600 and first hour of price action shall be keenly watched to anticipate the trend.