Closing Bell: Nifty ends below 17,000, Sensex falls 843 pts; IT, realty, metals worst hit

There is pessimism in the markets as weak global economic outlook along with the pressing geo-political tension and the dangling rate hike worries has given investors the ammunition to exit equities at will.

Also, the US FOMC minutes outcome later this week is already making investors nervous on concerns that the Fed could be going more rate hikes to keep a leash on rising inflation menace.

Technically, after a muted opening the index corrected sharply and breached the important support level of 17150. Long bearish candle on daily charts and lower high formation on intraday charts is indicating further weakness from the current levels.

The correction wave is likely to continue till 16850-16800. On the flip side, 17050 would be the key intraday resistance zone, above which a minor pullback rally is possible till 17100-17125.

Nifty witnessed selling pressure in the second half of the session. On the daily chart, the index has slipped below the psychological 17000 mark. Besides, the Nifty fell below 200DMA briefly before closing a bit higher.

The trend looks weak, a fall below 16980 may trigger a selling pressure in the market with a potential to fall towards 16800. On the higher end resistance is visible at 17100.

The Nifty has been witnessing a short term consolidation, within which it is oscillating with sharp swings in both the directions. A minor degree bounce in the last week fizzled out near the 50% retracement of the entire September decline as well as near the key daily moving averages. Thereon, the index started sliding down again.

On October 11, the index has breached the level of 17000 on a closing basis. Thus it is set to test the swing low, which is near 16750.

The Nifty is expected to attract buying support again near the support zone of 16800-16750. On the higher side, the zone of 17250-17300 kept the bounce in check for the last couple of sessions & can continue with its role of resistance in the short term.

USDINR spot closed flat at 82.31, after suspected RBI intervention capped its advance. Over this week, important data points are: FOMC minutes and US CPI inflation.

A strong than expected core inflation can push USDINR towards 82.80 levels. Over the near term, we expect a range of 81.80 and 82.80 on spot.

Quant and AI-driven Investment Advisor Wright Research has raised 1 million dollars as seed capital from Orios Venture Partners.

The company plans on using these funds for business expansion, bolstering the technology stack, and accelerating its foray into institutional fund management.

Markets remained under pressure and lost nearly one and a half percent amid the prevailing corrective phase. After the flat start, the Nifty index gradually drifted lower as the session progressed and slipped below the support of 17,100 levels to finally settle around the day’s low at 16,983.55 levels.

Pressure in the IT pack combined with a slide in index majors across sectors was weighing on the sentiment. In line with the move, the broader indices too witnessed a decline and lost nearly 2% each.

As we’re not seeing any respite on the global front, any disappointment on earnings or the macroeconomic front may put further pressure. On the index front, we are now eyeing 16,800 in Nifty and its decisive break would reverse the recovery trend. Traders should align their positions accordingly.

Indian equity benchmarks traded lower on Tuesday, extending their fall for the third straight session amid weak global cues. Asian shares slipped today, tracking an overnight decline on Wall Street.

On the domestic front, market participants also awaited September's retail inflation data, due to be released on Wednesday.

Nifty closed below the 17000 level at 16983.55 level with a loss of 257.45 points, while the Bank Nifty closed the session at 38712.45 level with a loss of 380.65 points.

On the technical front, the Nifty formed a Bearish Marabozu on daily charts which suggests weakness in the counter. Nifty has given a closing below the middle band of Bollinger as well as 21 DMA which adds bearishness to the prices. The Hourly momentum indicator STOACHSTIC & MACD were trading with a negative crossover which suggests a downside moment in the upcoming session.

The support for Nifty has shifted around 16800 levels while on the upside 17250 may act as an immediate hurdle. On the other hand, Bank Nifty has support at 38200 levels while resistance at 39500 levels.

Overall, Nifty can test the support level breaching below the same can show more downside rally.

India's outperformance till date made a case for profit booking for the FIIs today as geopolitical and currency risks came to the forefront.

Practically all sectoral indices ended in the red with the Nifty closing below 17k on a day when nothing was spared.

The broader markets too saw a steep correction in several stocks which have been defying gravity and moving up since the past several weeks.

Investors are becoming risk-averse due to rising geopolitical turmoil as well as worries about the global economic slump. Investors' caution ahead of the announcement of inflation data prevented a better-than-expected start to IT earnings from improving market mood.

However, as compared to global counterparts, domestic selling is not as aggressive since FII selling is primarily absorbed by DIIs.

Indian rupee closed flat at 82.32 per dollar against previous close of 82.32.

Indian benchmark indices ended lower for the third consecutive session with Nifty finishing below 17,000 level.

At Close, the Sensex was down 843.79 points or 1.46% at 57,147.32, and the Nifty was down 257.50 points or 1.49% at 16,983.50. About 1036 shares have advanced, 2291 shares declined, and 133 shares are unchanged.

Divis Labs, IndusInd Bank, Nestle India, JSW Steel and Eicher Motors were among the top Nifty losers. Axis Bank, Adani Enterprises and Asian Paints were the top gainers.

All the sectoral indices ended in the red with auto, metal, IT, oil & gas and realty indices down 1-3 percent.

BSE midcap and smallcap index fell over 1 percent each.

Inox Wind's subsidiary Inox Green Energy Services sold entire equity shareholding held in Wind One Renergy, Wind Three Renergy and Wind Five Renergy, to Adani Green Energy.

All three special purpose vehicles successfully commissioned 50 MW each of SECI Tranche 1 in 2019. Inox Wind had won 250 MW under the Tranche 1 of Solar Energy Corporation of India's (SECI -1) bids for wind power projects at Dayapar, Gujarat connected on the central grid, at a fixed tariff of Rs 3.46 per unit for 25 years for sale to PTC India.

Inox Wind was quoting at Rs 152.45, down Rs 3.50, or 2.24 percent.