Post Market Comment by Hardik Matalia, Derivative Analyst, Choice Broking
Below the Quote on Post Market Comment by Hardik Matalia, Derivative Analyst, Choice Broking
Indian benchmark indices experienced a volatile trading session. After a gap-up opening, the Nifty index failed to sustain higher levels, with selling pressure dragging it lower to close near the 24,750 mark. The Sensex declined by 494.75 points, or 0.61%, to end at 81,006.61, while the Nifty fell by 221.45 points, or 0.89%, closing at 24,749.85.
On the daily chart, the Nifty index has formed a strong bearish engulfing candle, indicating significant selling pressure from higher levels and closing near 24,750. Additionally, the index has formed a Head & Shoulder pattern and is approaching a potential breakdown, requiring increased caution among traders. Immediate support is established at 24,700; if this level is breached, it could lead to a decline toward the 24,500–24,200 range. On the upside, resistance is noted at 24,950–25,150, where selling pressure could re-emerge. A sell-on-rise strategy is recommended, with stop-losses positioned above these resistance levels. It is crucial to keep a close eye on the 24,700 level, as a breach here could confirm further downside momentum. Traders should remain cautious and avoid carrying any long positions until there is further confirmation of an upside move.
On the sectoral front, IT was the key contributor, supporting the market with a 1.19% gain. In contrast, the Real Estate, Auto, Media, and FMCG sectors were the major laggards, registering declines ranging from 1.64% to 3.76%. The broader indices also reflected negative sentiment, with the Nifty Midcap 100 index declining by 1.66% and the Nifty Small Cap 100 index down by 1.24%.
The India VIX increased by 2.57% to 13.39, indicating a rise in market volatility and growing uncertainty, which could lead to increased price fluctuations. This makes it important for traders to remain cautious. Open Interest (OI) data shows the highest OI on the call side at the 24,900 and 25,000 strike prices, signaling strong resistance levels. On the put side, OI is concentrated at the 24,700 and 24,500 strike prices, highlighting these as key support levels.
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