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

the Indian benchmark indices witnessed a rejection from the higher levels. Selling pressure dragged the Nifty below the 23,500 mark during the session, though it closed slightly below this level. The Sensex declined 728.69 points (0.93%) to settle at 77,288.50, while the Nifty declined by 181.80 points (0.77%) to close at 23,486.85.

On the daily chart, the Nifty index formed a strong bearish-bodied candle, indicating significant selling pressure throughout the session and closing near the day's low. This suggests that the bears remained in control, keeping the index near lower levels without any buying signals. On the downside, the 23,400 level will act as immediate and crucial support. A break below this level could trigger renewed selling pressure, pushing the index towards the 23,300–23,200 range. On the upside, immediate resistance is seen at 23,600, and sustaining above this level could attract fresh buying interest. As long as Nifty remains above the 23,000 mark, a buy-on-dips strategy is advisable, as any pullbacks are likely to find support. Given the heightened volatility, traders are advised to maintain strict stop-loss measures and avoid holding overnight naked positions to safeguard capital.

On the sectoral front, all sectors failed to hold their gains, with Media, Realty, PSU Bank, Financial Services, and IT emerging as the top losers, declining between 0.98% and 2.40%. The broader market indices also came under pressure, with the Nifty Midcap 100 index declining by 0.62% and the Nifty Smallcap 100 index falling by 1.07%.

The India VIX declined by 1.21% to 13.4700, indicating a drop in market volatility and improved investor sentiment. This suggests reduced uncertainty, with traders showing more confidence in market stability. Open Interest (OI) data shows the highest OI on the call side at the 23,600 and 23,700 strike prices, highlighting strong resistance levels. On the put side, OI is concentrated at the 23,300 strike price, marking it as a key support level.

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