Quote On Post market comment by Mandar Bhojane, Research Analyst, Choice Broking
Below the Quote On Post market comment by Mandar Bhojane, Research Analyst, Choice Broking
The Indian equity markets extended their gains for the second consecutive session on January 29, with the Nifty closing above the crucial 23,150 mark. The Sensex surged 631.55 points, or 0.83%, to settle at 76,532.96, while the Nifty climbed 205.85 points, or 0.90%, ending at 23,163.10. The broader market also showed strength, with the BSE Midcap index advancing 2.5% and the Smallcap index gaining 3.2%. However, the India VIX increased by 2.45% to 18.6400, indicating rising market volatility and caution among traders.
From a technical perspective, the Nifty rebounded strongly from its key support at 22,800 and managed to close above the 23,100 level, which holds significance as monthly support. Additionally, the index formed a bullish engulfing pattern, closing above the previous day's high. If the price sustains above 23,300 in the coming sessions, the index may extend its upside towards 23,650 and 23,800. Conversely, 22,800 will act as immediate and crucial support, and a break below this level may lead to increased downside pressure.
Momentum indicators suggest improving sentiment, with the RSI trending upwards from the oversold region at 43.59, indicating strengthening bullish momentum. The Stochastic RSI has also given a bullish reversal, reinforcing the possibility of further upside if key resistance levels are breached. The overall setup suggests a cautious yet optimistic outlook, with sustained strength above resistance levels required for a decisive breakout.
Derivative data points to a crucial resistance zone between 23,300 and 23,500, as indicated by the highest call open interest (OI). On the downside, strong support is seen at 23,000, where the highest put OI is concentrated. This positioning suggests a tight trading range in the near term, with a breakout above 23,300 likely to trigger further buying momentum. Given the heightened volatility and cautious trader positioning, market participants should closely monitor price action near these key levels to gauge further directional moves.
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