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

On October 22, Indian benchmark indices witnessed a buying after a gap-up opening but failed to hold the gains, where selling pressure dragged the Nifty index to close below 24500 mark. The Sensex declined by 930.56 points, or 1.15%, to end at 80,220.72, while the Nifty fell by 309 points, or 1.25%, closing at 24,472.10.

On the daily chart, the Nifty index faced selling pressure at higher levels, forming a strong bearish engulfing candle and closing below the 24,500 mark. This signals market weakness and suggests a continuation of the downtrend. Immediate support is seen at 24,400, and if breached, it could lead to a decline toward the 24,200–24,000 range. On the upside, resistance is identified at 24,600–24,750, where selling pressure may re-emerge. A "sell-on-rise" strategy is advisable, with stop-losses placed above these resistance levels. Traders should be cautious in holding any long positions, as the close below 24,500 confirms further downside momentum. Until the index decisively moves above 25,000, the risk of continued selling pressure remains high. In this volatile environment, caution and strict risk management are essential.

On the sectoral front, all sectors witnessed selling pressure, with all closing in negative territory. PSU Bank, Realty, Metal, and Media sectors experienced the highest selling, with declines ranging from 2.55% to 4.18%. The broader indices also reflected negative sentiment, with the Nifty Midcap 100 index declining by 2.61% and the Nifty Small Cap 100 index down by 3.92%.

The India VIX increased by 4.60% to 14.3950, 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 24,600 and 24,700 strike prices, signaling strong resistance levels. On the put side, OI is concentrated at the 24,400 and 24,300 strike prices, highlighting these as key support levels.

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