Quote on Post Market Comment by Hardik Matalia, Research Analyst, Choice Broking
Below the Quote on Post Market Comment by Hardik Matalia, Research Analyst, Choice Broking
On May 19, the Indian benchmark indices opened on a flat note and traded sideways throughout the day and some pressure in the later session dragged the nifty index lower to close below the 25,000 mark. The Sensex declined by 271.17 points (0.33%) to close at 82,059.42, while the Nifty slipped by 74.35 points (0.30%) to settle at 24,945.45.
On the daily chart, the Nifty index formed a small bearish-bodied candle with a short upper wick, indicating persistent selling pressure throughout the session and limited buying interest at lower levels. This candlestick pattern reflects prevailing bearish sentiment, suggesting that bears retained control during the trading day. Amid ongoing uncertainty, the index made an intraday low of 24,916.65 and ended the session on a negative note, closing below the crucial psychological level of 25,000 at 24,945.45. On the downside, immediate and crucial support is seen at 24,800, followed by a stronger support zone near 24,700. A breakdown below this zone could intensify selling pressure, potentially dragging the index towards the 24,500–24,300 range. On the upside, 25,000 acts as the initial resistance, while a more significant hurdle lies near 25,200. A decisive breakout above this level could trigger a bullish rally towards the 25,500–25,700 zone. Given the current market structure and sentiment, traders are advised to adopt a disciplined approach with strict risk management, focusing on short-term opportunities. In light of continued global uncertainties, it is prudent to avoid large overnight positions and maintain tight stop-loss strategies to manage volatility effectively.
On the sectoral front, Realty, PSU Banks, Pharma and Auto managed to hold their gains, closing higher in the range of 0.42% to 2.26%. In contrast, sectors such as IT, Media, and FMCG witnessed notable declines, with losses ranging between 0.19% and 1.3%. The broader markets witnessed some buying, with the Nifty Midcap 100 index was up by 0.08%, while the Nifty Small cap 100 index surged by 0.51%.
The India VIX surged by 4.86% to 17.3550, indicating a rise in market volatility and a potential increase in investor nervousness. This uptick reflects growing uncertainty in the near term. Open Interest (OI) data shows the highest concentration on the call side at the 25,000 and 25,200 strike prices, suggesting strong resistance levels at these points. On the put side, significant OI build-up is seen at the 24,900 and 24,800 strike prices, marking these levels as key support zones
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