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 February 10, the Indian benchmark indices opened with a gap-down and faced further selling pressure, pushing the market lower. Unable to stage any recovery, the Nifty index closed below the 23,400 mark. The Sensex declined by 548.39 points (0.70%) to settle at 77,311.80, while the Nifty fell by 178.35 points (0.76%) to close at 23,381.60.
On the daily chart, the Nifty index has formed a strong bearish candle for the fourth consecutive day, indicating that it is struggling to sustain higher levels. This pattern suggests a pause in the ongoing breakout, requiring confirmation for a sustainable move. High volatility has been observed following the Budget announcement and the RBI monetary policy. On the downside, 23,300 serves as a key support level, and a break below this mark could trigger extended selling toward 23,000. On the upside, immediate resistance is seen at 23,500, with a critical hurdle near 23,600. For a continued uptrend, the Nifty index must sustain above the 23,800 mark. Given the heightened volatility, traders are advised to maintain strict stop-loss measures and avoid overnight positions to safeguard their capital.
On the sectoral front, all sectors traded in negative territory, with Realty, Metal, Media, Energy, and Pharma being the major losers, declining in the range of 1.86% to 2.99%. The broader market indices also faced significant pressure, as the Nifty Midcap 100 index fell by 2.12%, while the Nifty Smallcap 100 index declined by 2.11%.
The India VIX rose 5.55% to 14.44.50, indicating heightened market volatility. This suggests increased uncertainty among traders, potentially impacting market sentiment and influencing short-term price movements in equities and derivatives. Open Interest (OI) data indicates the highest OI on the call side at the 23,500 and 23,600 strike prices, highlighting strong resistance levels. On the put side, OI is concentrated at the 23,300 strike price, marking these as key support levels.
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