Nifty closes below 15,900; Financials, Realty, and Auto sectors drag the market

Nifty has formed a Doji candle with long shadows, indicating indecisiveness.

Market update at 3.30 PM: It was a disappointing day for the Indian market as they initially recovered sharply from their day’s low, only to lose most of the points later. Nifty closed about 2.35 per cent lower at 15,863.15 while Sensex tanked about 1,491.06 points. Even the mid-cap and small-cap indices felt the heat as they fell about 2.37 per cent & 2.04 per cent, respectively. 

Nifty Metal emerged as the top performing sector and gained over 2 per cent while the rest of the sectoral indices experienced selling pressure. Nifty Bank, Nifty Realty and Nifty Auto plunged about 4.47 per cent, 5.47 per cent & 4.21 per cent, respectively. ONGC, Coal India, and Hindalco emerged as the top gainers while IndusInd Bank, Maruti Suzuki & Britannia became the top losers among Nifty stocks. 

Nifty has formed a Doji candle with long shadows, indicating indecisiveness. Meanwhile, global cues are likely to dictate the market trend further. 

Market update at 2.20 PM: Nifty has slided back to the day’s low and is trading around 15,700. Sensex has fallen nearly 2,000 points while Midcap & Smallcap indices plunged 3 per cent each. 

With this, India VIX shot up by over 8 per cent, which was 4 per cent up in the morning. 

The European markets have opened significantly lower i.e. about 3 per cent. 

All the sectors, apart from Nifty Metal and Nifty IT, are trading in deep red.  

Market update at 1 PM: Indices are off from the day’s low and have also, seen some recovery. Nifty is currently trading above 15,900, which is about 200 points higher from its day’s low. However, it is still down by 1.9 per cent while Sensex has shredded over 1,200 points. Moreover, Nifty Midcap and Nifty Smallcap have slipped 2.13 per cent & 1.83 per cent, respectively. 

Among the sectoral indices, Nifty Metal and Nifty IT have been trading higher and are supporting the market. All the other indices are still under pressure. ONGC, Bharti Airtel and Hindalco have become the top gainers of Nifty while banks like Axis Bank & IndusInd Bank tumbled over 5 per cent each. 

The level of 16 000 is a key level to watch, and further recovery above this level will be a breather for the bulls. 

Market update at 10.45 AM: Nifty and Sensex have been trading lower on Monday morning. Nifty opened just above 15,850 but soon, lost another 100 points.   

National Stock Exchange (NSE) has been facing a technical error regarding the stock prices ticker. Thus, there has been a cause of freezing of the stock prices. However, the issue seems to have been resolved a little.  

Nifty Metal is trading flat while the rest of the sectoral indices are trading in deep red. Moreover, India VIX is placed near 30 and has surged over 7 per cent.  

It has not been a good start for Nifty and it remains to be seen whether the benchmark index sees recovery from lower levels just like Friday or not.  

Pre-market update: Last Friday, the US markets tumbled amid rising global tensions despite good jobs data. Moreover, the European markets fell drastically i.e. nearly 3 per cent. 

The global tensions did not ease over the weekend and moreover, the delay in Iranian talks for Crude oil has led to further uncertainty. 

In the last trading session, the FIIs sold for about Rs 7,631 crore while the DIIs bought Rs 4,738 crore worth of equity. 

Brent Crude oil rose to 127 dollars per barrel and has been the highest since the 2008 financial crisis. 

Nifty is likely to open below 16,000. With this, the outlook of the market has become highly bearish and unstable.