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

On December 31, the Indian benchmark indices opened on a negative note and buying from the lower levels pulled the market up to close flat at 23644.80 mark. The Sensex ended on a negative note, declining by 109.13 points (0.14%) to settle at 78,139.01. On the other side, the Nifty was flat down by 0.10 points (0.00%) to close at 23,644.80.

On the daily chart, the Nifty index witnessed buying from lower levels despite a negative opening, indicating strong demand at support zones. However, the index closed below the 23,650 mark for the second consecutive session. On the downside, the 23,600 level remains a critical support; a breach of this level could push the index toward the 23,500–23,200 range. On the upside, 23,800 acts as immediate resistance, with the next significant hurdle at 24,000. A sustained close above these levels is crucial to counter the prevailing bearish momentum. Given the elevated market volatility, traders are advised to exercise caution, implement strict stop-loss measures, and avoid carrying long positions overnight to manage risk effectively.

On the sectoral front, the Energy, Pharma, PSU Bank, and Metal sectors managed to post gains, rising between 0.47% and 1.02%. In contrast, the IT, Realty, and Financial Services sectors saw the most notable declines, with losses ranging from 0.22% to 1.44%. The broader market indices traded positively, with the Nifty Midcap 100 index inching up by 0.02% and the Nifty Smallcap 100 index surging by 0.69%.

The India VIX increased by 3.40% to 14.4475, 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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