Weakness continues as Nifty ends at days low! India VIX surges over 8 per cent

Market update at 4.30 pm: It has been a disappointing day for Nifty as it closed below 17,000, falling about 1.65 per cent. Sensex plunged about 1,000 points while the overall sentiment of the market is getting worse.  

India VIX soared over 8 per cent. What’s more disturbing is the fact that no sectoral index ended in the green, which indicates a broader sell-off. The only stock in the top gainers’ list is UPL, which inched higher by around half a per cent. Now, since the 16,800-level is approaching, the price action for Nifty has to be carefully watched out for further clues! 

Market update at 1.15 pm: Halfway through the mark, Nifty still continues to struggle. It is currently down by 125 points or 0.7 per cent while Bank Nifty is trading flat. 

India VIX is rising as Nifty falls further. The top losers’ list includes Coal India and HCL Technologies, which are down by 5.79 per cent & 2.51 per cent, respectively. Meanwhile, UPL, HDFC, and ICICI Bank continue to hold Nifty. Nifty Midcap and Smallcap are trading flat while Nifty IT turned out to be the worst performer of the day.

Stay tuned for more such updates! 

Market update at 11.15 am: Indian benchmark indices i.e. Sensex and Nifty are trading lower by half a per cent amid volatility. Nifty hovers around 17,100 while Sensex is down by over 400 points. Nifty Bank is marginally down.  

Nifty IT faces the heat due to lower-than-expected US jobs data. TCS and Infosys are down by over 1.5 per cent each. All the sectoral indices, apart from Nifty Metal and Nifty Realty, are trading in red. India VIX is up by a per cent and is nearing 19. Natural gas is down by over 8 per cent!  

Nifty halted its two-week losing streak as it closed higher during the week ending December 03, 2021. Nifty advanced nearly by 1 per cent and ended the week marginally below the 17,200 mark amid sharp sell-off on the last trading day of the week. Meanwhile, Nifty Midcap index outperformed the frontline index while Smallcap index added 0.52 per cent.  

The index on the weekly chart has formed a small body bullish candle with wicks on either side, which indicates that the dips were bought and at higher levels, profit booking was witnessed. Nifty faced resistance near the 50 per cent retracement level of the prior decline. In the earlier pullback, the index had tested 61.8 per cent retracement level of the prior decline and thereafter, it declined. So, this indicates that the pullbacks are getting shorter, which means that the index has been singalling reasonably clearly that its intentions are leaning more downward than continuing higher. Furthermore, on the Heikin ashi chart on the weekly time scale, the price has breached the rising uptrendline, which again adds to the chorus of negative bias. Hence, be watchful and have a proper risk management placed.  

Going ahead, the 100-DMA, which is in rising trajectory & placed at levels of 17,169 is likely to act as an immediate support level and a breach below this level could open gates for the head & shoulder pattern measured target, which stands near the level of 16,600-650.