Nifty closes above 16,650; volatility index crashes over 16 per cent!

Sensex and Nifty reclaimed their important psychological mark of 56,000 & 16,700, respectively.  

Market update at 3.30 PM: It was a fabulous recovery for the Indian indices as they witnessed a strong technical pullback from the lower levels. Nifty soared around 2.53 per cent and closed the week above 16,650 while Sensex gained about 1,429 points.   

All the sectoral indices closed positively with Nifty Metal and Nifty Realty surging nearly 6 per cent each. Coal India, Tata Motors, and Tata Steel emerged as the top gainers among Nifty stocks while Britannia, Nestle & HUL remained weak at the end of the day.   

Nifty witnessed a strong technical pullback but closed below its 200-DMA. Further developments regarding the Russia-Ukraine conflict shall be keenly watched for the weekend.
 

Market Update at 11.05 AM: The Indian benchmark indices have extended their early gains and with this, Sensex and Nifty reclaimed their important psychological mark of 56,000 & 16,700, respectively.  

The broader market indices were seen outperforming the headline indices with Nifty Midcap 100 and Smallcap 100 jumping 4.28 per cent & 5 per cent, respectively.   

All the sectoral indices continue to trade in the green, led by Nifty PSU Bank and Nifty Media. 

Market Update at 9.53 AM: After a disastrous fall in the last trading session, the bulls are back with a vengeance on D-Street. Nifty and Sensex have jumped nearly 2.5 per cent each.  

ICICI Bank and Reliance Industries have combinedly contributed 78 points to Nifty’s kitty.  

All the sectoral indices are trading in the green, led by Nifty PSU Bank and Nifty Media as they have surged nearly 6 per cent each.  

Interestingly, the fear gauge India VIX has crashed nearly 18 per cent and is trading close to the 26 mark.  

For Nifty, the level of 16,800-16,850 is likely to act as a stiff resistance in the near term.

Pre-market update: Last night, in a dramatic turn of events, the US markets witnessed a fabulous short covering as NASDAQ rose 3.34 per cent while Dow Jones also closed positively and gained about 700 points since its day's low.

This can be attributed to the fact that the US has levied heavy sanctions on Russia. Along with the US, European nations have also imposed severe sanctions that would have a major impact on Russia and its economy.

With this, the Asian markets have opened higher, and SGX Nifty indicates a gap-up opening of about 200 points, closer to 16,500.

In the last trading session, the FIIs have sold aggressively for about Rs 6,448 crore while the DIIs continue to support the market and bought about Rs 7,667 crore worth of equity.

Apollo Hospitals shall be replacing IOC in Nifty 50 index as NSE revises eligibility norms.

On Thursday, India VIX soared about 27 per cent. However, with today's higher opening, the volatility index is expected to crash.

With a huge gap-up, short-covering is expected, which can propel the market even higher.

The market is largely news-based and tends to ignore the technicals. In such a situation, it is a wise decision to keep trading positions light.