Nifty slips yet another day; closes below 17,100 level, all sectors end in red

Adani group stocks have witnessed severe profit booking as well amidst fraud allegations.  

Market update at 3.30 PM: Sharp selloff has been seen across all sectors, with major losses led by PSU Banks, IT and Metal stocks right from the start of the session. NSE Nifty 50 index has plunged 111 points which is around 0.65 per cent. It bounced 55 points from day’s low from an important psychological and derivative support level of 17,000. S&P BSE Sensex tanked 310 points while Nifty Midcap and Nifty Small caps plunged 0.50 per cent and 0.78 per cent respectively.     

Nifty PCR for weekly expiry came to oversold region around 0.7.      

In the commodities market, the precious metals Gold and Silver traded in small range after strong up move in last 2 sessions. Crude is down around 2.22 per cent.      

BPCL and TITAN emerged as the top gainer from the Nifty 50 stocks while Adani Enterprises, Adani ports and M&M were the top losers.        

Follow-up selling has been witnessed after yesterday’s heavy sell-off but importantly, 17000 support level is protected for now which will be crucial for the upcoming session. Meanwhile, global cues shall be in focus as US Inflation Data may trigger the next move.

Market update at 11.15 AM: Indices have been trading lower since the start of the session. Strong profit booking has been witnessed and thus, Nifty has slipped below 17,100 levels and is down by 0.63 per cent. S&P BSE Sensex has tanked over 300 points while Nifty Midcap and Nifty Smallcap have plunged 0.86 per cent and 1.17 per cent respectively.   

All the sectors have deep cuts, with Nifty PSU Banks plummeting over 2 per cent, along with Nifty IT, Nifty Realty and Nifty Bank which have lost a per cent each. Adani group stocks have witnessed severe profit booking as well amidst fraud allegations.  

About 472 stocks are advancing as against 1515 stocks that are declining, thus indicating strong weakness in the market.   

17,000 holds a strong and crucial support level for Nifty and any fall below this level can trigger severe sell-off.   

Market update at 9.40 AM: Indices have been trading on a mixed note amid uncertain global cues. NSE Nifty 50 trades just below 17,200 level while S&P Sensex is up 80 points. Stock specific action is seen across the broader market. 

Media and pharma stocks have seen good buying interest today while IT remains under pressure. India VIX has slipped over 2 per cent.

Pre-market update:  On Monday, after the SVB and Signature, First Republic Bank also sinked more than 60 per cent. After the gap down opening, Dow Jones Industrial Average bounced 600 points and made the day's high of 32,240 because of government's positive stand on this crisis. But then it lost momentum and heavy profit booking started which led to losing all gains to close, where it opened in morning. This action formed a gravestone doji kind of candle on daily charts. Somehow Nasdaq 100 closed in positive around 0.79 per cent to close at the 11,923 level.  

In the commodities market, the precious metals Gold and Silver rallied around 2.47 per cent and 6 per cent respectively. Where CBOE VIX also rose around 6 per cent. 

With a heavy sell-off, NIFTY 50 slipped around 1.49 per cent after the flat opening on Monday. FIIs sold 1546.86 crore where DIIs are supporting the market by buying 1418.58 crore in domestic market. As per the OI Data, a tug of war can be seen where Client & DIIs added longs aggressively and on the opposite side FIIs and Pros added shorts heavily in index thus their index long percentage came to 15.92 per cent i.e. near to oversold region.

DIIs & Pros notable addition of longs in stocks is to be noted. Meanwhile FIIs added some shorts in stocks as per the OI Data.

SGX Nifty indicates that Nifty is likely to open gap up. It would be interesting to see where follow-up buying can hold this gap or not.