Nifty ends on a good note! VIX crashes 8 per cent

Market update at 4: PM: It has been a good day for Nifty as the bulls managed to sustain their effort, pushing Nifty 188 points or 1.15 per cent up to close at 17,166. In the last hour, Nifty gained about 100 points while India VIX has crashed almost 9 per cent. 

All the sectoral indices except Nifty Pharma ended in the green. Nifty Midcap ended a per cent up while Nifty Smallcap ended flat. 

Overall, it was a good day for the bulls, and it would be interesting to see if the bulls maintain their momentum.  

Market Update at 10:00 AM: Indian benchmark indices witnessed a jubilant start to the month of December. Both Nifty and Sensex are up by nearly 1 per cent with Nifty trading close to the 17,150 mark while Sensex is near the 57,600 mark.  

HDFC and Reliance Industries are the top two contributors to Nifty’s kitty.  

Despite the buoyancy witnessed in the headline indices, the broader market indices have witnessed divergent performance with Nifty Midcap 100 being up by 0.14 per cent while Nifty Smallcap 100 was down by 0.31 per cent.  

Overall, the market breadth remains in favour of advances despite the underperformance of the broader market indices.  

Among the sectoral indices, barring Nifty Pharma, all other sectoral indices were seen trading in green, led by Nifty Financial Services and Nifty Metal.  

Fertiliser stocks are gaining limelight in the early deals as the stock of NFL, GNFC, FACT and Chambal Fertilizers were up in the range of 5-6 per cent each.  

Nifty ended the final trading session of the month of November below the important psychological mark of 17,000. It was a roller-coaster ride for the index on Tuesday as one point in the day, it touched a high of 17,324.65. However, profit booking emerged at higher levels and it ended the day near its lowest point of the day with a loss of 0.41 per cent or 70.75 points.  

The trading session kicked off on a buoyant note amid expectations of record GST numbers for November; however, optimism faded away post the views of the Moderna CEO comments on Omicron variant. Meanwhile, the FIIs continued their profit booking on Tuesday and also, turned net sellers as well with the amount of Rs 5,445.25 crore. Overall, in the month of November, FIIs sold nearly Rs 40,000 crore in cash market, which is the highest this year. Earlier, they sold Rs 25,572 crore in October and Rs 23,193 crore in July. 

The price action of the index formed a bearish inverted hammer-like candle with a long upper shadow on the daily chart, which indicates sharp sell-off from the highs of the day. Besides, every bounce was being sold, but the key takeaway from Tuesday's session was that the index did not make a lower low.  

Going ahead, the low of 16,782 is a crucial support for Nifty and as long as this support level is intact, hope for some pullback towards the levels of 17,300 in the near term.