IGI Logo

Below the Quote on Post Market Comment by Mandar Bhojane, Derivative Analyst, Choice Broking

The Indian benchmark indices experienced intraday selling following a flat opening. However, buying from lower levels helped the market recover, ultimately closing flat to negative below the 23,700 mark. The Sensex ended on a negative note, declining by 50.62 points (0.06%) to settle at 78,148.49. Similarly, the Nifty also declined by 18.95 points (0.08%) to close at 23,688.95.

On the daily chart, the Nifty index formed a Hammer candlestick pattern with a long lower wick, indicating buying interest from lower levels after a flat opening. This pattern suggests potential bullish momentum, with further upside likely if key resistance levels are breached. However, the index failed to close above the 23,700 mark, signaling caution. On the downside, the 23,500 level remains a critical support zone. A breach below this level could trigger extended selling pressure, pushing the index toward the 23,200–23,000 range. Conversely, on the upside, immediate resistance is seen at 23,800, followed by a significant hurdle at 24,000. A sustained close above these resistance levels would be essential to negate the prevailing bearish sentiment and confirm a bullish reversal. Given the heightened market volatility, traders are advised to remain cautious and implement strict stop-loss measures to protect capital. Avoiding overnight long positions is recommended to manage risks effectively in the current market conditions.

On the sectoral front, the IT and FMCG sectors managed to post gains, rising by 0.60% and 0.44%, respectively. In contrast, the Pharma, Financial Services, PSU Bank, and Media sectors witnessed notable declines, with losses ranging between 0.75% and 0.94%. The broader market indices also traded under pressure, with the Nifty Midcap 100 index declining by 1.05% and the Nifty Smallcap 100 index falling by 1.65%.

The India VIX decreased by 1.33% to 14.4650, indicating reduced market volatility and a calmer sentiment, which could suggest lower immediate risk. This underscores the importance of traders staying vigilant. Open Interest (OI) data indicates the highest OI on the call side at the 23,800 and 24,000 strike prices, highlighting strong resistance levels. On the put side, OI is concentrated at the 23,600 and 23,500 strike prices, marking these as key support levels.

Above views are of the author and not of the website kindly read disclaimer