Post Market Comment by Hardik Matalia, Derivative Analyst, Choice Broking
Below the Post Market Comment by Hardik Matalia, Derivative Analyst, Choice Broking
the Indian benchmark indices opened with a gap-up, but selling pressure dragged them lower. However, some buying from lower levels toward the end helped the Nifty index close at the 23,600 mark. The Sensex declined by 213.13 points (0.27%) to settle at 78,058.16, while the Nifty fell by 92.95 points (0.39%) to close at 23,603.35.
On the daily chart, the Nifty index has formed a strong bearish candle, 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. High volatility is expected ahead of the RBI monetary policy, making it crucial for traders to remain cautious. On the downside, 23,500 serves as a key support level, and a breach below this mark could trigger extended selling toward 23,200. On the upside, immediate resistance is observed at 23,700, followed by a critical hurdle near 23,800. 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 maintain strict stop-loss measures and avoid overnight positions to protect their capital.
On the sectoral front, the Pharma, IT, and Private Banks sectors posted gains, rising between 0.08% and 0.64%. In contrast, the Realty, FMCG, Auto, and Energy sectors experienced notable declines, with losses ranging from 0.86% to 2.19%. The broader market indices traded with on negative note, as the Nifty Midcap 100 index down by 1.26%, while the Nifty Smallcap 100 index declined by 0.30%.
The India VIX rose 0.66% to 14.18, indicating heightened market volatility. This suggests increased uncertainty among traders, potentially impacting market sentiment and influencing short-term price movements in equities and derivatives. Open Interest (OI) data indicates the highest OI on the call side at the 23,700 and 23,800 strike prices, highlighting strong resistance levels. On the put side, OI is concentrated at the 23,500 strike price, marking these as key support levels.
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