Stock Market Highlights: Sensex ends 555 points lower, Nifty50 cracks below 17,650 as market snaps two-day winning run

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Expect volatility to remain on higher side, traders advised not to make aggressive bets: Angel One's Sameet Chavan

Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One, continues to remain cautious and does not expect the Nifty50 index to cross the sturdy wall of 17,900-17,950 anytime soon. 

"For the coming session, all eyes will be on on global developments, because any further aberration on that front would finally validate our recent stance," he told CNBCTV18.com. "As far as levels are concerned, 17,500-17,450 would be seen as crucial support. A violation of lower range would be seen as the first sign of weakness. Before the recent highs, 17,750-17,850 are to be treated as immediate resistance and the way things panned out today, any bounce towards these levels is likely to get sold into," he said.

Chavan expects volatility to remain on the higher side, and advises traders not to trade with aggressive bets.

Still maintain these are great levels in market: Dipan Mehta

Dipan Mehta, Director of Elixir Equities, said 100 points on the Nifty index is something market participants should get "absolutely used to".

"It is not even 1 percent, not even a correction, just a mild sell-off and there could be some stock-wise correction. I still maintain that these are great levels and on further corrections, there are investors sitting on the sidelines with cash in their books wanting to do some reshuffling, getting out of the underperformers and getting into overperformers," he said. It is an ideal time to reshuffle a portfolio or to invest fresh money into the market, he said.

Rupee expected to trade in 74.40-75.20 range with positive bias: Gaurang Somaiyaa of Motilal Oswal 

Gaurang Somaiyaa, Forex and Bullion Analyst at Motilal Oswal Financial Services, said the rupee fell sharply primarily on the back of weakness in domestic and global equities, and also as the dollar rose to a one-year high.

"Market participants remain cautious ahead of the RBI policy statement. Any concerns over higher inflation in India in the RBI's policy meeting could also weigh on the rupee," he said. The RBI will release its policy statement after concluding a two-day scheduled review on Friday.

"Global crude oil prices have rallied steadily in the past few weeks, adding to worries for India’s elevated oil import bill. Today, focus will be on the private payrolls number that will be released from the US. We expect the USD-INR (spot pair) to trade with a positive bias and quote in the range of 74.40-75.20,” he added.

Nifty could run into profit taking after a small recovery: HDFC Securities' Deepak Jasani

Nifty has formed a lower top on a short-term basis, said Deepak Jasani, Head of Retail Research at HDFC Securities. "It has also formed an engulfing top on the daily charts which has bearish connotations. The weak advance-decline ratio also suggests wide spread profit taking. Even if the global markets show some recovery, Nifty could after a small recovery again run into profit taking. Investors may take a part of their profits and raise cash, while traders can keep strict stop losses and reduce their positions till the sentiment improves," he said.

Doesn’t look like market is in for a medium- or long-term correction: Karvy Capital's Kunj Bansal

Kunj Bansal, CIO of Karvy Capital, told CNBC-TV18 he believes it doesn't look like that the market is in for a medium- or long-term correction. "If we look at the market in the very recent time, this is the third time that we are getting this correction and the second time from the similar levels as we have got today. If again, this short term be extended to the last one-and-a-half years, in hindsight, now we know that every correction has been a buying opportunity," he said.

"Probably we can say the same thing here or whether it will not be, only time will tell. But it doesn’t look like that we are in for a long-term correction or even for a medium-term correction here. It will be more or less these smaller corrections that will be there. If the festive season turns out to be good, the market should remain positive," he added. 

He mentioned that one big negative for the market at the current juncture is rising oil prices, ,which is certainly a key monitorable.

Rupee can trade in 74.80-75.40 range in near term: Kotak Securities' Anindya Banerjee 

Anindya Banerjee, DVP-Currency and Interest Rate Derivatives at Kotak Securities, expects the USD-INR pair to trade within a range of 74.80-75.40 in the spot market over the near term. 

"A combination of rising oil prices, the fear of liquidity ebbing due to central banks rolling back their easing measures, rising bond yields and weakness in stocks, had a negative impact on the rupee. Carry traders were forced to cover shorts once the USD-INR pair broke above the 74.65 level," he said.

Rupee at 6-month low of 74.98 against dollar

The rupee extended losses to end at 74.98 against the dollar, its lowest closing level since April 23.

Market At Close | Sensex, Nifty, midcap index slip 1% each; Nifty Bank down 0.6% 

Here are some highlights of today's session:

--Nifty Bank falls 219 points to 37,522; midcap index drops 281 points to 30,728

--Metal, commodity stocks fall in line with international prices; Hindalco top Nifty loser

--Reliance Industries falls 2 percent after hitting record high on Tuesday

--September sales, volumes fail to boost sentiment; Tata Steel down 3 percent

--Tata Consumer, Britannia buck the trend, close higher

--ONGC holds gains as gas prices continue to rise; stock up 2 percent

--Chemical stocks maintain gaining momentum; Deepak Nitrite up 8 percent, Tata Chemicals up 3 percent

--Bosch top midcap gainer, up nearly 12 percent

--IRCTC, MCX, Bandhan Bank, Dalmia Bharat top midcap gainers

--AB Fashion, Nalco, Astral, Abbott, BHEL, RBL top midcap losers

--Market breadth favours the bears; advance-decline ratio at 1:2

Market At Close | All-round fall in market; 42 of Nifty50 stocks in the red

Market At Close | Hindalco, SBI Life, IndusInd Bank, Tata Steel top laggards; Tata Consumer, ONGC, UPL top gainers

Closing Bell | Sensex tumbles 555 points, Nifty cracks below 17,650

The Sensex index shed 555.2 points or 0.9 percent to end at 59,189.7 and the broader Nifty50 benchmark fell 176.3 points or one percent to settle at 17,646. Weakness across sectors, led by IT, metal, pharmaceutical and financial stocks pulled the market lower. (Read more on the closing bell here)

Sanjeev Sanyal, Principal Economic Advisor on:

Moody's rating outlook on India from negative to stable

"It is merely recognition of the obvious that some of the more hysterically negative outlooks and analysis that we saw a few months ago, has clearly proved to be wrong. I wasn't too thrown off when they put us on negative watch and I am not going to be wildly exuberant because we have been put on stable or even if we move into positive watch. What we need to do is to watch the data rather than get too excited about certification by various agencies."

RBL Bank shares fall 4%

Rupee at a nearly 2-month low against the US dollar

Voltas shares trade 0.2% lower

Buy Gujarat Gas, UPL: Aditya Agarwala

Here are two trading calls from Aditya Agarwala of Yes Securities:

-- Buy Gujarat Gas for a target of Rs 660 with a stop loss of Rs 620

-- Buy UPL for a target of Rs 770 with a stop loss of Rs 710

Tata Steel BSL Q2 update |

Volume up two percent QoQ and up 4.8% YoY while sales is down one percent QoQ and down 13 percent YoY. Q2 steel sales volume marginally lower QoQ on lower availability of hot rolled products. Steel sales volume slip on lower exports and stock liquidation focus in the previous year

Metal stocks feel the heat. Here's why

Metal prices are under pressure for the second consecutive day. The US dollar is trading at a one-year high,  which is clearly one of the reasons for the decline in metal prices. Apart from that, there are concerns over China energy. The crunches continue to weigh on manufacturing, smelters, and downstream companies. Also, the Evergrande concerns continue to cast a shadow.

The weakening real estate sector has been leading to lower demand for metals. Euro power woes also weighing on the prices. So it is not just China, it seems to be getting spread around. The potential tapering by the US Fed is also one of the reasons that have been putting pressure on metal prices.

Asian shares slip in cautious trading

Asian shares slipped in cautious trading on Wednesday, shrugging off a rally on Wall Street led by technology companies and banks that erased most of the losses from the previous day's sell-off. Japan's benchmark Nikkei 225 sank one percent in morning trading to 27,544.06, after opening higher. South Korea's Kospi dipped one percent to 2,932.15. Australia's S&P/ASX 200 shed 0.5 percent to 7,209.40. Hong Kong's Hang Seng fell nearly 0.9 percent to 23,899.34. Trading was closed in Shanghai for the Chinese national holidays.

European shares tumble 1%

European share markets started Wednesday's session sharply lower following losses in Asia. Investors globally remained converned over rising US yields and inflation as crude oil remained at multi-year highs. The pan-European Stoxx 600 index was last seen trading 1.1 percent lower in early deals. The UK's FTSE benchmark was down one percent. France's CAC and Germany's DAX indices were down 1.4 percent and 1.3 percent respectively.

CARE upgrades Surya Roshni's long-term bank facilities rating to 'AA-' from 'A+'; 'stable' outlook reaffirmed

Market Watch: Prakash Gaba, prakashgaba.com

- Buy Ramco Cement with a stop loss of Rs 1,010 and a target of Rs 1,050.
- Buy Navin Fluorine International with a stop loss of Rs 3,950 and a target of Rs 4,200.

Principal Economic Adviser Sanjeev Sanyal raised its outlook on India's sovereign rating to 'stable' from 'negative'

Market update

Benchmark indices were trading in the green in the afternoon session on Wednesday amid weakness in other Asian markets. At 12:30 pm, the Sensex was up 197.91 points or 0.33 percent at 59,942.79, and the Nifty was up 53.80 points or 0.3 percent at 17,876.10. 

Suvodeep Rakshit, Senior Economist at Kotak Institutional Equities

The monetary policy meetings seem to have reached a stage where decisions from the RBI will be more keenly watched than what the MPC delivers. In the October meeting, the markets will be watching for RBI’s signals on addressing the liquidity glut along with the normalization of reverse repo rates. The MPC will likely continue to stick with the accommodative stance, for now, while keeping the repo rate unchanged.

With a mixed bag in terms of both growth and inflation outlook, the RBI and MPC will want to wait for a clearer picture. But as the economy recovers, and given the financial stability perspective, it is also essential to gradually withdraw the excess liquidity and reverse an ultra-low interest rate regime with likely incipient asset price dislocations.

The RBI needs to telegraph a path of normalisation rather than let market expectations anchor unsuitably. The RBI has rightly focused on the near-term till now, and the October policy will be the perfect window to outline its thoughts on normalization, especially since the RBI will certainly want to avoid any sudden tightening.

Buy HDFC Bank, UPL, says Mitessh Thakkar of earningwaves.com

- Buy HDFC Bank with a stop loss of Rs 1,599 and a target of Rs 1,645
- Buy UPL with a stop loss of Rs 729 and a target of Rs 760

Nippon India AIF, Varun Goel On CNBC-TV18     

The residential real estate is showing early signs of a price rise. Looking to trim its exposure as valuations are getting ahead of earnings growth. There is a 10 percent increase in real estate prices that could lead to a 30 percent rise in the net asset value (NAV). We will look for opportunities in solar energy and other renewable energy as well.