IGI Logo

Below the Quote on Post-market comment by Hardik Matalia,  Derivative Analyst, Choice Broking

On April 09, the Indian benchmark indices traded sideways throughout the day, followed by a gap-down opening, closing the Nifty index near 22,400 mark. The Sensex declined 379.93 points (0.51%) to settle at 73,847.15, while the Nifty fell 136.70 points (0.61%) to close at 22,399.15.

On the daily chart, the Nifty index formed a small bearish-bodied candle with a minor lower wick, indicating hesitation and an inability to surpass higher levels. This suggests that traders should wait for a clear breakout to confirm the next directional move. The index ended the session on a negative note, closing near the 22,400 mark, which signals selling pressure and rejection at higher levels. On the downside, 22,300 will act as an immediate and crucial support. A decisive break below this level could trigger renewed selling pressure, potentially dragging the index toward the 22,000–21,700 range. On the upside, immediate resistance is placed at 22,550. A sustained move above this level could attract some buying interest, pushing the index toward the 22,700–22,850 zone. Given the heightened global volatility and ongoing tariff-related trade tensions, traders should expect increased market swings. It is advisable to maintain strict stop-losses and avoid holding overnight naked positions to safeguard capital amidst uncertain conditions.

On the sectoral front, FMCG was the only sector to hold its gains, closing up by 1.78%. In contrast, sectors like PSU Banks, IT, Pharma, Realty, Metal, and Media witnessed notable declines, with losses ranging between 1.22% and 2.52%. The broader market also came under pressure, as the Nifty Midcap 100 index declined by 0.51%, while the Nifty Smallcap 100 index fell by 0.86%.

The India VIX surged by 4.83% to 21.43, indicating a rise in market volatility and increased nervousness among traders. This spike suggests that participants are anticipating larger price swings in the near term, reflecting caution in the market and potentially leading to choppy or unpredictable trading sessions ahead. Open Interest (OI) data shows the highest OI on the call side at the 22,500 and 22,800 strike prices, highlighting strong resistance levels. On the put side, OI is concentrated at the 22,300 strike price, marking it as a key support level.

Above views are of the author and not of the website kindly read disclaimer