Post-Market Comment by Mandar Bhojane, Research Analyst, Choice Broking
Below the Quote on Post-Market Comment by Mandar Bhojane, Research Analyst, Choice Broking
Indian equity markets ended the session on a positive note, with the Nifty closing above the 23,100 mark despite a volatile trading day. The Nifty Index rebounded strongly in the latter half, recovering from an intraday dip of 162.95 points, and formed a hammer candlestick pattern on the daily chart. This pattern signals robust buying interest at lower levels, suggesting potential bullish momentum ahead.
The index held its critical monthly support at 23,100, reaffirming its strength. On the upside, immediate resistance is now seen at 23,300, with a breakout above this level likely paving the way for targets of 23,600 and 23,800 in the near term.
Broader market indices underperformed, as the Nifty Midcap and Smallcap indices shed 1.5% each. Sectorally, the Nifty IT index outshone with a nearly 2% gain, followed by 0.5% gains in pharma and private bank indices. However, selling pressure was observed in the realty sector, which dropped 4%, while media, metal, energy, consumer durables, and PSU banks fell between 0.5% and 1.5%.
The India VIX, a gauge of market volatility, eased by 1.45% to close at 16.8150, reflecting reduced uncertainty. Derivatives data indicated the highest call open interest at the 23,300 and 23,500 levels, while the highest put open interest was at 23,000, highlighting a tightly contested trading range.
Overall, the market sentiment remains positive as long as the Nifty sustains above its key support level of 23,100. A decisive breakout above 23,300 could trigger further upside momentum.
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