Post Market Comment by Hardik Matalia, Derivative Analyst, Choice Broking
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Below the Post Market Comment by Hardik Matalia, Derivative Analyst, Choice Broking
On October 15, Indian benchmark indices experienced a volatile trading session, where after a gap-up opening the Nifty index unable to hold the higher levels and selling pressure dragged it to lower and ended near 25050 mark. The Sensex declined by 152.93 points, or 0.19% lower, to end at 81,820.12, while the Nifty fell by 70.60 points, or 0.28% lower, closing at 25,057.35.
On the daily chart, the Nifty index faced significant selling pressure after a gap-up opening, closing near the 25,050 level. The session formed a bearish engulfing candle, which is typically seen as a sign of a potential trend reversal, suggesting that sellers are now in control. This pattern calls for caution; as further downside could be on the horizon if key support levels are breached. Fresh buying should only be considered if the index provides a strong closing above the 25,250 level, confirming a potential recovery. On the downside, immediate support is placed at 25,000, followed by 24,900. A break below these levels could intensify selling pressure, dragging the index towards the 24,700–24,500 range. Traders should closely monitor these critical levels, with 25,250 acting as a major resistance, potentially capping any short-term recovery attempts.
On the sectoral front, Realty, Media, and FMCG were the key contributors, supporting the market's upward movement. In contrast, Metal, Auto, and Energy were the major laggards, recording declines ranging from 0.61% to 1.44%. Broader indices maintained positive momentum, with the Nifty Midcap 100 index rising by 0.21% and the Nifty Small Cap 100 index gaining 1.11%.
The India VIX increased by 0.06% to 13.0025, indicating a slight rise in market volatility. While this reflects some caution, the overall low level suggests that market stability persists. However, a further uptick in VIX could signal growing uncertainty. Open Interest (OI) data shows the highest OI on the call side at the 25,100 and 25,200 strike prices, indicating strong resistance levels. On the put side, OI is concentrated at the 25,000 and 24,900 strike prices, highlighting these as key support levels.
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