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Below the Quote on Post Market Comment by Hardik Matalia, Derivative Analyst, Choice Broking

The Indian benchmark indices opened on a flat note and witnessed strong buying from lower levels. However, they failed to sustain higher levels but still managed to end the session on a positive note. The Nifty index closed near the 23,250 mark. The Sensex gained 226.85 points (0.30%) to settle at 76,759.81, while the Nifty advanced 86.40 points (0.37%) to close at 23,249.50.

On the daily chart, the Nifty index has formed a bullish-bodied candle with a long upper wick, indicating that the index is struggling to sustain higher levels. This pattern suggests a pause in the current breakout, requiring confirmation for a sustainable move. On the downside, 23,000 serves as a crucial support level, and a breach below this mark could trigger extended selling toward 22,800. On the upside, immediate resistance is observed at 23,300, followed by a critical hurdle near 23,500. A sustained close above these resistance levels is 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 their capital. It is recommended to avoid overnight long positions until the index provides a clear confirmation of a reversal to effectively manage risks in the current market environment.

On the sectoral front, the Realty, Energy, Pharma, and FMCG sectors posted gains, rising between 0.72% and 1.78%. In contrast, the Media, IT, and Auto sectors experienced notable declines, with losses ranging from 0.40% to 1.21%. The broader market indices traded with mixed sentiment, as the Nifty Midcap 100 index ended flat, down by 0.01%, while the Nifty Smallcap 100 index edged higher by 0.12%.

The India VIX declined by 6.71% to 17.39, reflecting a decrease in market volatility and indicating improved investor confidence. A lower VIX suggests reduced uncertainty, which can support stability in the broader market. Open Interest (OI) data indicates the highest OI on the call side at the 23,300 and 23,500 strike prices, highlighting strong resistance levels. On the put side, OI is concentrated at the 23,200 and 23,000 strike prices, marking these as key support levels.

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