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

On September 18, Indian benchmark indices experienced a volatile trading session and ended lower. The Sensex closed 131.43 points lower, or down 0.16 percent, at 82,948.23, while the Nifty lost 41 points, or 0.16 percent, to close at 25,377.55.

On the daily chart, the Nifty index made a new record high of 25,482.2 but could not sustain higher levels, as selling pressure pulled the market lower, closing below the 25,400 mark. The index has formed a Doji candle, signaling indecision in the market and a potential reversal in the near term. For the uptrend to continue, the Nifty must sustain above the 25,500 level. Conversely, 25,200 serves as important support, and a close below this level could trigger extended selling pressure, potentially driving the index down to 25,000.

On the sectoral front, finance and banking were key positive contributors, helping to keep the market at higher levels. Meanwhile, the IT, Pharma, and Metal sectors saw profit booking, closing 0.83% to 3.05% lower. Broader indices traded negative, with the Nifty Midcap 100 index declining by 0.71% and the Nifty Small Cap 100 index down by 0.39%.

The India VIX increased by 6.22 percent to 13.3725, indicating an increase in market volatility and uncertainty. This could suggest heightened nervousness among traders and the potential for larger price swings in the near term. Open Interest (OI) data showed the highest OI on the call side at the 25,500 and 25,600 strike prices, while on the put side, it was concentrated at the 25,300 and 25200 strike prices.

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