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

On December 30, the Indian benchmark indices opened on a flat note and experienced significant volatility throughout the day, closing below the 23,650 mark. The Sensex ended on a negative note, declining by 420.93 points (0.57%) to settle at 78,248.14. Similarly, the Nifty fell by 168.50 points (0.71%) to close at 23,644.90.

On the daily chart, the Nifty index formed a significant bearish candle with a long upper wick, signaling strong selling pressure at higher levels. The index ended the session below the 23,650 mark after experiencing considerable intraday volatility. On the downside, the 23,600 level serves as a critical support. A breach of this level could lead the index toward the 23,500–23,200 zone. Conversely, on the upside, 23,800 is a key resistance, with the next major barrier at 24,000. A sustained close above these levels is essential to negate the current bearish momentum. Given the heightened volatility, traders are advised to remain cautious, use strict stop-loss measures, and avoid holding long positions overnight to manage risks effectively.

On the sectoral front, the Pharma, IT, and FMCG sectors managed to hold their gains, rising between 0.31% and 1.01%. In contrast, the Media, Realty, AUTO and Metal sectors experienced the most significant declines, with losses ranging from 1.27% to 1.87%. The broader market indices reflected mixed sentiment, with the Nifty Midcap 100 index advancing by 0.37%, while the Nifty Smallcap 100 index fell by 0.62%.

The India VIX increased by 5.55% to 13.9725, indicating increased market volatility and growing uncertainty, which could result in heightened price fluctuations. This underscores the importance of traders exercising caution. Open Interest (OI) data indicates the highest OI on the call side at the 23,800 and 24,000 strike prices, highlighting strong resistance levels. On the put side, OI is concentrated at the 23,500 and 23,200 strike prices, marking these as key support levels.

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