Nifty 50 tumbles over 600 points in 4 sessions on heightened volatility, down 1.65% in May so far

Against this backdrop, the Nifty 50 scale has witnessed a notable diminution of astir 360 points implicit the past 3 trading sessions. From its highest of 22,794 points reached connected May 3rd, the scale has plummeted by astir 500 points.

Up to this constituent successful the existent month, the Nifty has experienced a diminution of 1.65%, marking the astir important monthly driblet since October 2023. Despite this downturn, the scale maintains a year-to-date instrumentality of 2.30% for 2024.

Also Read: Nifty 50 falls for 3rd league successful a row; investors suffer astir ₹5 lakh crore

This downward trajectory continued into the 4th consecutive trading league connected Wednesday, with the Nifty 50 shedding different 0.52%, oregon 117 points, hitting an intraday debased of 22,185 points. Taking today's debased into account, the Nifty 50 has dropped 609 points. 

On the different hand, Sensex besides recorded a diminution of 438 points successful today's trade, reaching an intraday debased of 73,073 points. Over the people of the past 3 sessions, the Sensex has shed a full of 1,100 points.

Also Read: Q4 results today: L&T, Tata Power, BSE, TVS Motor, Hero Motocorp, and Canara Bank to study Q4 net connected May 8

During the caller sell-off, mid- and small-cap stocks bore the brunt of the downturn, experiencing important selling pressure. The Nifty Midcap 100 scale witnessed a diminution of 3% implicit the past 3 sessions, portion the Small Cap 100 scale plummeted astir 4% during the aforesaid period.

Foreign portfolio investors sold Indian shares worthy ₹3,668.84 crore connected Tuesday, portion home organization investors bought a nett of ₹2,304 crore successful stocks, Trendlyne information showed. FPIs person been sellers successful 20 of the past 25 sessions.

Also Read: FPIs crook nett sellers worthy ₹8,671 crore successful April aft 2 months of buying

On the different hand, India's volatility scale roseate by arsenic overmuch arsenic 7.7% to 18.32, hitting a 15-month precocious for the 3rd league successful a enactment connected Wednesday. 

Dr V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, "The India VIX has spiked 72% from the April lows, indicating that precocious volatility volition persist for immoderate much time. It is important to recognize that VIX is based connected Nifty scale options prices."

"The spike successful VIX is owed to the rising measurement of options trades. Many investors are buying enactment options to support their portfolio successful lawsuit of an unexpected predetermination outcome," helium added. 

Analysts expect accrued intraday volatility to persist until the result of the predetermination results connected June 4. According to Motilal Oswal, the Nifty has contiguous enactment astatine 22,100 and past 22,000 zones, with absorption astatine 22,450 and past 22,550 zones. 

Currently, it indispensable support a cardinal enactment level of 22,222 zones to perchance determination upwards towards 22,450 and past 22,550 zones. Conversely, a clasp beneath 22,222 could pb to a downside towards 22,100 and 22,000 zones, it added.

Disclaimer: The views and recommendations fixed successful this nonfiction are those of idiosyncratic analysts. These bash not correspond the views of Mint. We counsel investors to cheque with certified experts earlier taking immoderate concern decisions.

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Published: 08 May 2024, 12:08 PM IST