Weakness persists on Dalal street; Nifty closes at 17,400 level as metals take a hit, Realty shines

ICICI Bank, Powergrid Corporation and Kotak Mahindra Bank are the top gainers from the Nifty 50 stocks

Market update at 3.30 PM: Indices ended the strongly volatile session on a weaker note as fresh buying interest in real estate stocks offset the weakness in metal and IT. NSE Nifty 50 index slipped 0.42 per cent to close at the 17,400 level while S&P BSE Sensex lost 175 points. Nifty Midcap and Nifty Smallcap plunged 0.69 per cent and 1.12 per cent respectively.  

Nifty Realty was the star performer as it jumped over 2 per cent. The banking stocks also witnessed strong buying interest towards the end. However, metals along with IT remained under pressure throughout the day.  

ICICI Bank, Powergrid Corporation and Kotak Mahindra Bank are the top gainers from the Nifty 50 stocks while Adani Enterprises, Bajaj Auto and UPL were the top losers.  

Nifty formed a hammer-like candle and managed to close above the 200-DMA and budget-day low. This indicates strong support at the level of 17,300. Going forward, this level shall be a crucial support.  

Market update at 11 AM: Indices have plunged to their day’s low amid a strong sell-off across metal, IT and auto stocks. NSE Nifty 50 index has plunged 0.80 per cent to trade at the 17,300 level. It has slipped below budget day low and is extremely weak in a shorter timeframe. S&P BSE Sensex has tanked over 400 points while Nifty Midcap and Nifty Smallcap have shredded 1.50 per cent each. 

All the sectors are trading in red, and India VIX has surged over 4 per cent. About 347 stocks are advancing as against 1671 stocks that are declining, thus indicating poor market breadth. 

Nifty has slipped below its 200-DMA level of 17,376 and sentiment looks extremely bearish as of now. The 17,300 level happens to be crucial support and any fall below this level can trigger a severe sell-off. 

Market update at 9.30 AM: Indices are trading lower upon opening amid poor global cues. NSE Nifty50 index slipped 0.30 per cent to trade at the 17,400 level while S&P BSE Sensex lost 200 points. The broader market is also under pressure. 

The banks are the top performers early on while IT and auto stocks remain under pressure. India VIX has plunged over 2 per cent. 

Pre-market update: The gruesome fear of prolong higher interest rates is taking a toll on investors' sentiment as global equities tanked between 2-3 per cent last week. On Friday, Dow Jones lost 337 points while the tech-heavy Nasdaq plunged 1.69 per cent. With this, the Asian markets have reacted negatively and trends on SGX Nifty indicate a loss of 50 points.

Oil prices fell below USD 82 per barrel after rising inventories offset supply cuts from Russia.

In the last trading session, the FIIs sold to the tune of Rs 1470 crore while the DIIs bought shares worth Rs 1400 crore.

Nifty is expected to open below 17,500 and first hour of price action shall be keenly watched to anticipate the trend.