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Below the Quote on Post Market Comment by Mandar Bhojane, Equity Research Analyst, Choice Broking

The Indian equity markets closed on a weak note on January 27, 2025, with the Nifty slipping below the 22,850 mark. At the close, the Sensex fell 824.29 points or 1.08% to settle at 75,366.17, while the Nifty declined 263.05 points or 1.14% to end at 22,829.15. This marks a significant downward movement, with broader indices also witnessing steep losses. The BSE Midcap index dropped 2.7%, and the Smallcap index plunged 3.5%, signaling heavy selling pressure across the board.

On the technical front, the Nifty broke down from a 10-day consolidation phase, closing near the critical support level of 22,800. This indicates strong bearish momentum in the market. If the index sustains below 22,800, further corrections could take it towards the 22,500 and 22,200 levels. On the upside, immediate resistance is seen at 23,100 and 23,300, where the highest call open interest (OI) is concentrated. Failure to breach these resistance levels could maintain the bearish trend.

The India VIX, a key measure of market volatility, surged 8.29% to close at 18.1325, reflecting heightened uncertainty. Derivatives data revealed the highest call OI at the 23,000 and 23,300 levels, indicating strong resistance in this range. Meanwhile, the highest put OI was concentrated at 22,500, suggesting a tightly contested support level. This highlights the cautious stance of traders amid the current market volatility.

Overall, the market remains under pressure, with bearish momentum dominating near-term sentiment. Investors are advised to monitor key support and resistance levels closely, as a breach of 22,800 on the downside or a breakout above 23,100 could determine the next directional move. Given the prevailing volatility, a cautious approach is recommended, with a focus on risk management and selective stock-picking.

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