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

the Indian benchmark indices experienced sharp selling pressure following a flat opening. Unable to recover from the lower levels, the Nifty index ended near the 23,500 mark. The Sensex closed on a negative note, declining by 528.28 points (0.68%) to settle at 77,620.21. Similarly, the Nifty fell by 162.45 points (0.69%) to close at 23,526.50.

On the daily chart, the Nifty index formed a strong bearish candle, indicating significant selling pressure from higher levels following a flat opening. This pattern suggests the potential for continued bearish momentum, especially if key support levels are breached. The index failed to sustain higher levels and closed near the 23,500 mark, signaling caution. A breakdown below this support could trigger extended selling pressure, potentially dragging the index toward the 23,200–23,000 range. On the upside, immediate resistance is observed at 23,700, followed by a critical hurdle near 23,850. A sustained close above these resistance levels would be necessary to negate the prevailing bearish sentiment and confirm a bullish reversal. Considering the heightened market volatility, traders are advised to remain cautious and implement strict stop-loss measures to safeguard capital. Avoiding overnight long positions is recommended to manage risks effectively in the current market environment.

On the sectoral front, the FMCG sector was the sole gainer, rising by 0.93%. In contrast, the Realty, Energy, PSU Bank, Metal, and IT sectors saw sharp declines, with losses ranging between 1.16% and 2.73%. The broader market indices also remained under pressure, as the Nifty Midcap 100 index fell by 0.93% and the Nifty Smallcap 100 index dropped by 1.35%.

The India VIX rose by 1.33% to 14.6575, indicating a slight increase in market volatility and caution among traders amid the prevailing bearish sentiment. 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 and 23,200 strike prices, marking these as key support levels.

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