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

The Indian benchmark indices exhibited a sideways trend throughout the day, following buying activity from lower levels at the start of the session. The Sensex ended on a positive note, gaining 115.40 points (0.15%) to settle at 76,520.39. Similarly, the Nifty advanced by 50 points (0.22%) to close at 23,205.35.

On the daily chart, the Nifty index has displayed follow-up buying after the previous session's bounce from lower levels but has struggled to sustain higher levels. This pattern suggests that selling pressure persists at elevated levels, reflecting a lack of conviction among buyers. A breakdown below the immediate and crucial support at 23,000 could intensify selling pressure, potentially dragging the index toward the 22,800–22,500 range. 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 crucial 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 decisively trades above the 23,500 mark to manage risks effectively in the current market environment.

On the sectoral front, the IT, Media, Pharma, and Auto sectors posted gains, rising by 1.1% to 1.79%. In contrast, the Banking sector, including PSU Banks, and the Financial Services sector experienced notable declines, with losses ranging between 0.1% and 0.28%. The broader market indices also traded on a positive note, with the Nifty Midcap 100 index increasing by 1.86% and the Nifty Smallcap 100 index rising by 1.12%.

The India VIX declined by 0.46% to 16.6950, reflecting a slight decrease in market volatility and improved investor sentiment, though cautious trading amid prevailing uncertainty persists. 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 23,000 and 22,800 strike prices, marking these as key support levels.

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