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

On June 5, the Indian benchmark indices opened with a significant gap-up; however, the session witnessed high volatility in the early hours. The Nifty index touched an intraday high of 24,899.85, but selling pressure from higher levels led to a partial retracement, with the index eventually settling near the 24,750 mark while still ending on a positive note. The Sensex gained 443.79 points (0.55%) to close at 81,442.04, while the Nifty advanced 130.70 points (0.53%) to end the session at 24,750.90.

On the daily chart, the Nifty formed a small-bodied bullish candle with long wicks, indicating high volatility and indecision. Despite intraday swings, buyers maintained control, resulting in a positive close. With the RBI policy announcement approaching, heightened volatility is expected, and traders should watch for confirmation of the next directional move. On the downside, 24,700 remains the immediate support, followed by a stronger support zone near 24,500. A breach below these levels could trigger further selling pressure and drag the index lower. On the upside, 24,800 serves as the immediate resistance, with a significant hurdle around the 25,000 mark. A decisive breakout and sustained move above these levels is crucial to revive buying momentum and support a potential uptrend. Given the ongoing global uncertainties and policy-related event risk, traders are advised to adopt a disciplined approach with strict risk management. It is prudent to use tight stop-loss strategies and remain cautious, particularly amid elevated market volatility.

On the sectoral front, the performance was largely positive, with Realty, Pharma, Metal, Financial Services, and IT emerging as the major gainers, rising between 0.46% to 1.75%, indicating broad-based buying interest across key sectors. On the other hand, PSU Bank, Media, and Auto witnessed some pressure, slipping in the range of 0.11% to 0.58%, reflecting selective profit booking. Meanwhile, the broader markets outperformed, with the Nifty Midcap 100 index gaining 0.65% and the Nifty Smallcap 100 index rising by 0.96%, highlighting a stronger appetite among investors for mid and small-cap stocks.

The India VIX declined by 4.21% to 15.0825, indicating a drop in market volatility and suggesting that traders are anticipating relatively stable conditions in the near term. This decline in the volatility index reflects reduced fear among market participants, potentially supporting a range-bound market. Open Interest (OI) data shows the highest concentration on the call side at the 24,800 and 25,000 strike prices, indicating strong resistance at these levels. On the put side, significant OI build-up is observed at the 24,700 and 24,500 strike prices, marking these as key support zones.

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