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Below the Quote On Post market comment by Mandar Bhojane,  Research Analyst,  Choice Broking

The Nifty index experienced a highly volatile trading session after opening with a gap-up. Initially, the index surged to an intraday high of 22,330. However, it could not sustain this level and sharply declined by 275 points, reaching an intraday low of 22,079.35 in the second half of the trading session.

Despite this significant drop, the Nifty index demonstrated a strong recovery. It reversed direction from its intraday low, rallying by 377 points to close near the 22,392.35 level. This impressive recovery led to the formation of a hammer candlestick pattern on the daily chart, characterized by a long lower wick. This pattern is typically a bullish signal, indicating potential reversal from the downtrend and suggesting that buyers have regained control.

If the Nifty index can sustain levels above 22,400, it is likely to move towards the 22,600 and 22,800 levels in the coming days. Additionally, the closing price above the 20-day Exponential Moving Average (EMA) of 22,300 provides further support for a bullish outlook. This 20 EMA level will now act as an immediate support.

Furthermore, support levels for the Nifty index are seen at 22,200 and 22,100. Analysis of Nifty put options shows a significant concentration of Open Interest (OI) at the 22,200 level, indicating robust support at this point. On the call side, there are notable OI concentrations at the 22,500 and 22,900 levels, suggesting these as resistance levels to watch, with the 22,900 level approaching all-time highs.

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