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

The Indian benchmark indices opened with a gap-up and witnessed strong buying during the session but failed to sustain higher levels. The Nifty index ended below the 23,000 mark. The Sensex closed on a positive note, gaining 535.23 points (0.71%) to settle at 75,901.41, while the Nifty advanced 128.10 points (0.56%) to close at 22,957.25.

On the daily chart, the Nifty index has formed a Doji candle, signaling indecision between buyers and sellers as the index struggles to sustain higher levels. This pattern indicates a potential reversal or a pause in the current trend, depending on the direction of the next move. A breakdown below the immediate and crucial support at 23,800 could intensify selling pressure, potentially dragging the index toward the 22,500–22,000 range. On the upside, immediate resistance is observed at 23,050, followed by a critical hurdle near 23,300. 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 clear confirmation of a reversal, to effectively manage risks in the current market environment.

On the sectoral front, the Realty, Financial Services, Banking, and Auto sectors posted gains, rising between 1.34% and 2.17%. In contrast, the Pharma, Energy, Media, and IT sectors experienced notable declines, with losses ranging from 0.57% to 2.33%. The broader market indices also faced pressure, with the Nifty Midcap 100 index declining by 0.51% and the Nifty Smallcap 100 index falling by 1.81%.

The India VIX surged by 0.34% to 18.1950, reflecting a slight increase in market volatility and indicating heightened uncertainty among market participants. This rise suggests that traders are anticipating larger price swings in the near term. Open Interest (OI) data indicates the highest OI on the call side at the 23,000 and 23,100 strike prices, highlighting strong resistance levels. On the put side, OI is concentrated at the 22,900 and 22,800 strike prices, marking these as key support levels.

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