Nifty recovers from days low; Nifty Energy jumps 2 per cent!

Nifty has recovered almost 150 points from the day’s low and it is now trading above the 17,700 mark. 

Market Update at 3:15 PM: Nifty has recovered almost 150 points from the day’s low and it is now trading above the 17,700 mark. 

Besides, the majority of the sectoral indices were trading in red with Nifty Realty being the top loser. On the other hand, Nifty Energy and Nifty PSU Bank turned out to be the top gainers. Nifty Energy has gained 2 per cent.   

On the options’ front, the 17,800 Call option has seen a massive addition of open interest in today’s session with nearly 30 lakh shares added in the open interest. On the other hand, the 17,800 Put option was seen shedding open interest.  

Market Update at 12:20 PM: There seems to be a change of fortune on D-Street as the selling pressure has intensified in the last half an hour of the trading session. As a result, the Indian benchmark indices were seen trading near the lows of the day.  

Currently, Nifty is nearly down by 180 points from the day’s high while India VIX is seen trading above the 18-mark. 

Market Update at 10:00 AM: Nifty has trimmed its early morning gains but still, it is seen trading with modest gains of 25 points. Market breadth remains healthy as 60 per cent of the stocks of Nifty 50 index were trading in green. Interestingly, Reliance Industries and NTPC were the top contributors to Nifty as Reliance has single-handedly contributed as much as 28 points to Nifty’s kitty.   

Among the sectoral indices, Nifty Energy is leading the charge after gaining more than 1.5 per cent, followed by Nifty PSU Bank, which has advanced 1.26 per cent. On the other hand, Nifty Realty and Nifty IT have tumbled 1.19 per cent & 0.96 per cent, respectively.   

Nifty CPSE, which comprises select central public sector enterprises, is seen buzzing today as it has jumped more than 2 per cent and with this, it scaled to a fresh 2-year high.   

Nifty ended at 17,855.10 with gains of just 1.90 points. Nifty Auto index emerged as the top gainer with 3.22 per cent. The realty and media indices advanced by 2.99 per cent & 1.63 per cent, respectively. Bank Nifty ended up by 0.90 per cent. On the other hand, Nifty IT index was the top loser as it plummeted 2.88 per cent. Meanwhile, Nifty Pharma and Nifty FMCG declined 0.9 per cent each.  

Nifty formed a bearish candle as its closing was lower than the opening level. Also, the index has formed a lower high & lower low when compared to the prior bar. Going forward, consolidation is expected in the index.   

Despite the fact that the benchmark index has not declined much on Monday, the market breadth remained negative. And India VIX jumped more than 6 per cent and closed above 18.05. As a result, it has resulted in a 17-week breakout. The uptick in India VIX has serious implications in the near term. Hence, we would advise the traders to keep a close eye on India VIX as sustaining above the 18-mark would give a tough time.   

On the downside, the level of 17,640 is immediate support and a breach of this support would result in a fall up to the level of 17,440. On the upside, the level of 18,045 is likely to act as strong resistance in the near term.