Quote on Post-market comment by Hardik Matalia, Derivative Analyst, Choice Broking
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Below the Quote on Post-market comment by Hardik Matalia, Derivative Analyst, Choice Broking
On October 4, Indian benchmark indices experienced a volatile trading session, with significant selling pressure on the higher levels, closing below 25,000 levels. The Sensex dropped by 167.71 points, or 0.21% lower, to end at 81,467.10, while the Nifty fell by 31.20 points, or 0.12% lower, closing at 24,981.95.
On the daily chart, the Nifty index encountered selling pressure at higher levels, closing below the 25,000 mark. It formed a negative candle with a small body and a long upper wick, signaling a "sell on rise" approach. Fresh buying is advisable only if the index moves above the 25,300 zone. On the downside, immediate support is seen at 24,850, followed by 24,700. A break below these levels could lead to further selling pressure, potentially driving the index towards the 24,500–24,200 range. Traders should monitor these key levels closely, as resistance at 25,300 could limit any short-term recovery attempts.
On the sectoral front, Realty, Pharma, Media, and Auto were the key contributors supporting the market, while FMCG and Energy were the major laggards, posting declines of 0.80% to 1.57%. Broader indices traded positive, with the Nifty Midcap 100 index up by 0.97% and the Nifty Small Cap 100 index up by 1.33%.
The India VIX decreased by 3.19% to 14.12, indicating a reduction in market volatility and suggesting that traders are anticipating a more stable market environment in the near term. Open Interest (OI) data revealed the highest OI on the call side at the 25,200 and 25,300 strike prices, while on the put side, it was concentrated at the 24,800 and 24,700 strike prices.
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