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Below the Quote on Post Market Comment by Hardik Matalia, Research Analyst, Choice Broking

On December 17, the Indian benchmark indices experienced a highly volatile session, ending near the 24,300 mark. The Sensex declined by 1,064.11 points (1.30%) to settle at 80,684.46, while the Nifty fell by 332.25 points (1.35%) to close at 24,336.

On the daily chart, the Nifty index experienced a highly volatile session, with selling pressure dragging the index lower. The formation of a strong bearish candle near the 24,300 mark indicates that sellers maintained control by the end of the session.  Looking ahead, the 24,500 level is expected to act as a critical resistance, followed by a stronger hurdle at 24,700. A decisive breakout above 25,000 could open the door for further upside momentum.  On the downside, 24,200 serves as immediate support, with an additional safety net at 24,000. In this volatile market environment, traders are advised to adopt a buy-on-dips strategy as long as the index holds above 24,000. To manage risk effectively, it is recommended to maintain a strict stop-loss at 24,000 on a closing basis.

On the sectoral front, all sectors witnessed selling pressure, with all closing in negative territory. PSU Bank, Metal, Energy and Auto sectors experienced the highest selling, with declines ranging from 1.57% to 1.82%. The broader indices also reflected negative sentiment, with the Nifty Midcap 100 index declining by 0.57% and the Nifty Small Cap 100 index down by 0.68%.

The India VIX increased by 3.32% to 14.4850, indicating a rise in market volatility and growing uncertainty, which could lead to increased price fluctuations. This makes it important for traders to remain cautious. Open Interest (OI) data shows the highest OI on the call side at the 24,500 and 24,700 strike prices, signaling strong resistance levels. On the put side, OI is concentrated at the 24,200 and 24,000 strike prices, highlighting these as key support levels.

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