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

In a highly volatile session, Indian benchmark indices relinquished all intraday gains, ending in the negative territory. At close, the Sensex was down by 188.50 points or 0.25 percent at 74,482.78, while the Nifty fell by 38.60 points or 0.17 percent to 22,604.80. Of the shares traded, 1987 advanced, 1623 declined, and 141 remained unchanged.

On the daily chart, the Nifty opened with a gap and trended upwards, forming higher highs and higher lows, eventually reaching an all-time high level of 22,783.35. However, in the final 30 minutes of trading, it erased all intraday gains, closing below the 22,600 level at 22,604.85. Should the Nifty breach the 22,700 level again, it may potentially ascend to 22,900 and 23,000 in the coming days, with 22,500 acting as an immediate support level.

Similarly, the Bank Nifty, after touching an all-time high near 50,000 and reaching 49,974.75, experienced a 720-point decline from its peak in the late afternoon rally, closing near 49,249.90. An inverted hammer candlestick pattern formed on the daily chart, indicating profit booking from higher levels. If the Bank Nifty surpasses the 49,600 level, it could potentially ascend to the 50,000 mark and even 50,500 at all-time highs in the days ahead, with 49,000 serving as immediate support.

Analysis of Nifty put options reveals a concentration of Open Interest (OI) at the 22,500 level, suggesting potential support, while significant OI concentrations on the call side are observed at 22,800 and 23,000 levels, approaching all-time highs. On the Bank Nifty call side, the highest open interest is observed at 50,000, acting as a resistance level, while on the put side, 49,000 is seen as a good support level.

Traders and investors are advised to consider buying opportunities during Nifty & Bank Nifty dips and to implement a suitable stop-loss strategy below the mentioned support levels.

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