Indices recovered from day's low; Nifty closed below 17000, FMCG supported the markets

Metals and PSU Banks continue to remain under pressure. 

Market update at 3.30 PM: A roller coaster ride for the day, Nifty dropped almost 220 points to touch its recent lows then bounced 160 points in second half of the day to close at 16,988 level while S&P BSE Sensex slipped 297 points and closed at 57,628. Nifty Midcap 100 and Nifty Smallcap 100 fell 1.04 per cent and 0.98 per cent respectively.       

Nifty weekly PCR is still in oversold zone (0.83).     

FMCG sector performed well in today’s session. But Metal, PSU Bank and IT remained weak throughout the day.        

Hindustan Unilever, ITC, IOC and BPCL are the top gainers amongst Nifty 50 stocks while Bajaj Finserv, Bajaj Finance, Hindalco and Wipro were the top losers.      

Nifty recovered sharply in the afternoon session from the support of previous lows. Bulls may remain in action till markets are trading above this support zone of 16,850 to 16,800. 

Market update at 3 PM: Indices have witnessed recovery off day’s low. NSE Nifty 50 index has jumped over 120 points from day’s low to trade above 16,900 levels while S&P Sensex is now down by less than 500 points.  

FMCG is the prime leader in supporting the market. Metals and PSU Banks continue to remain under pressure. 

Market update at 12.15 PM: Indices trade at day’s low amid poor sentiment in the market. NSE Nifty 50 index has slipped 1.34 per cent to trade below 16,900 levels while S&P BSE Sensex has tanked over 800 points. Nifty Midcap and Nifty Smallcap have also lost 1.50 per cent and 1.30 per cent respectively.   

All the sectors are trading in red, with metals and PSU Bank indices experiencing deep cuts of over 2 per cent. India VIX has surged over 14 per cent amid such negativity.   

About 458 stocks are advancing as against 1578 stocks that are declining, thus showing bearish market breadth.   

Meanwhile, BPCL, Divis Laboratories and Dr Reddy’s Laboratories are the top gainers from the Nifty 50 stocks while Bajaj Finserv, Adani Enterprises and Hindalco Industries are weak today.   

16,850 level acts as a crucial support for Nifty and any fall below this level can trigger fresh shorts in the system.   

Market update at 9.35 AM: Indices have been trading on a weak note amid poor global cues. NSE Nifty 50 index has slipped below nearly a per cent to trade 17,000 level while S&P BSE Sensex has lost over 500 points. Midcap and smallcap indices are also trading on a negative note.   

All the sectors are trading in red and India VIX as surged over 11 per cent

Pre-market update: UBS rescues Credit Suisse with help from Swiss national bank, a deal worth of $3.2 Bn, 1 share of UBS = 22.48 shares of Credit Suisse. Wall Street closed out an uncertain week with a decline on Friday, as ongoing concerns about the banking sector weighed on the major U.S. equity averages. Dow Jones Industrial Average dropped 384.57 points or 1.19 per cent and closed around 31861.99 level. Nasdaq 100 concluded trading at 12,519.88, falling 61.51 points on the day. Meanwhile, CBOE VIX surged 1096 per cent again in the last trading session.   

In the global commodities market, Gold and Silver rallied 3.49 per cent and 4.05 per cent respectively. Gold’s rally of the last week is one of the largest one-week rally since March 2020.  

WTI Crude closed at 15 months lows around the levels of $66.22.  

On Friday, Indian markets saw a strong short covering rally towards the end as Nifty surged 0.67 per cent to close at 17100 level while S&P BSE Sensex gained 355 points. Nifty jumped about 135 points in the afternoon session. Nifty Midcap 100 and Nifty Smallcap 100 rose 0.32 per cent and 0.69 per cent respectively.       

Nifty weekly PCR is still in oversold zone (0.87).   

FIIs sold 1766.53 crore and DIIs bought 1817.14 crore in domestic market.  

As per the OI Data, no major change in Clients & DIIs Positions.  

Pros covered their shorts and FIIs again added some shorts in index.   

Now FIIs index longs came to 10.19 per cent.  

Dow Jones Futures rose 100 point after UBS – Credit Suisse deal but still below Fridays' high.  

Nifty closed near to technical breakout level, which is a positive sign for the bulls. Now SGX Nifty indicates a gap down opening of about 100 points amid poor global cues.   

Meanwhile, the immediate resistance is at 17,150 level and shall be closely watched for today.