Nifty closes below 16,250; auto, metals, and realty drag the market

It was a volatile day for the Indian market as the indices made a huge swing on both sides.

Market update at 3.30 PM: It was a volatile day for the Indian market as the indices made a huge swing on both sides. Nifty, after falling towards 16,100, recovered over 300 points, only to fall back below 16,250. In the end, it closed at 16,245.35, down by 1.35 per cent. Sensex shredded over 750 points. Volatility was seen even in the mid-cap and small-cap space as their indices closed about 2.08 per cent & 1.76 per cent lower, respectively.  

Among the sectoral indices, Nifty IT remained resilient to changes and traded higher for most of the part. However, major profit booking was seen in the metals sector as the index fell over 3 per cent. Along with this, Nifty Auto and Nifty Realty fell nearly 3 per cent each.   

However, some stocks such as Dr Reddy’s Labs, ITC, and Tech Mahindra emerged as the top gainers of Nifty while stocks like Titan Company, Maruti Suzuki & Tata Motors remained weak throughout the day.  

The closing of Nifty was not very positive and further weakness is expected. Global news will continue to dominate the markets for some more time.  

Market update at 12.35 PM: The indices have seen a sharp recovery from their day’s low. Nifty has recovered about 150 points and is trading around 16,300. Sensex is currently down by 634 points while Nifty Midcap and Nifty Smallcap continue to trade lower. 

Among the sectoral indices, Nifty IT is trading positively by about half a per cent and is supporting the market. Nifty Pharma is trading flat while the rest of the indices are trading lower.  

Dr Reddy’s Labs, Tech Mahindra, and ITC have become the top gainers among Nifty stocks. 

Meanwhile, Nifty has seen a path to recovery and is expected to see some more upside.  

Market update at 10.35 AM: Nifty has fallen below 16,200, hitting a low of 16,160.25. The index continues to trade at the day’s low while all the sectors are in deep red. The situation has worsened and it remains to be seen whether the index will see a recovery or not.   

Market update at 10.15 AM: Nifty opened about 158 points lower. However, the benchmark index continued to trade weaker and is currently, down by 1.5 per cent, trading around 16,250. Sensex has lost over 870 points. Even the mid-cap and small-cap indices have slipped over a per cent each.  

Among the sectoral indices, the auto and banking sectors have dragged the market the most. Nifty Auto has fallen over 3 per cent while Nifty Bank plunged 1.6 per cent. Moreover, all the major sectoral indices are trading in the red.  

The 16,200 level remains strong support and if breached, Nifty might see a further downfall.

Pre-market update: The US and European markets closed lower last night. NASDAQ fell about 1.56 per cent while most of the European markets were down by over 2 per cent. 
In the early morning hours today, Russia shelled Ukraine's one of the biggest nuclear power plants, which supplies about one-fourth of the total power to Ukraine. The continuous shelling of the Russian army, as well as unsuccessful peace talks, have proved to be a great disappointment for the global markets.

With this, the Asian markets have opened significantly lower and SGX Nifty indicates a lower opening of about 250 points.

In the last trading session, the FIIs have sold for about Rs 6,644 crore while the DIIs bought about Rs 4,799 crore worth of equity.Besides, Crude oil is up by 2 per cent today and with this, it’s inching towards 110 dollars per barrel.

Meanwhile, Nifty is likely to open around 16,250 level while the level of 16,200 is likely to act as immediate support.