Amid global rout Sensex plunges over 500 points (Roundup)

Mumbai, Sep 20 : The Indian stock market witnessed high level of volatility on global cues with key markets across the globe showing weak trends.

Accordingly, S&P BSE Sensex index fell 524.96 points or 0.89 per cent to close at 58,490.93 points. The Nifty50 fell 188.25 points or 1.07 per cent to end Monday's trading session at 17,396.90 points.

Throughout the day, the indices glided through the red, and green zones before finally ending in the red.

Sensex recouped its initial losses to cross the 59,000 mark before its downhill trend.

The decline in the broader markets was higher.

Barring Nifty FMCG, all other sectoral indices are trading in the red with metals, PSU Banks, financial services, auto and realty indices dragging the most.

HUL was the biggest gainer on Nifty50, followed by Bajaj Finserv and ITC, while Tata Steel, JSW Steel and Hindalco were among the major losers.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd said: "Global equity markets witnessed steep corrections and Indian markets also followed suit as there was widespread selling, especially in banking, metals and realty stocks."

After a sharp rally in recent sessions, the markets could see some bouts of volatility in the near future, he said, adding that the benchmark Nifty has formed a strong reversal formation which clearly indicates high chances of a further correction from current levels.

The texture of the market is weak and downward momentum could continue in the short run, Chouhan said.

"For the next few trading sessions, the 17,525 level could be the sacrosanct resistance level for the traders, and trading below the same we can expect further price correction up to 17,300-17,250 levels, whereas trading above 17,525 may trigger a quick pullback rally up to 17,625-17,675 levels," he said.

Ashis Biswas, Head of Technical Research at CapitalVia Global Research Ltd said: "The market witnessed the continuation in the correction and an attempt to hold the level above the Nifty50 Index level of 17,500. The market suggests that 17,450-17,500 will be an important support zone for the market to stay positive in the short term.