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Below the Quote On Post market comment by Mandar Bhojane, Research Analyst, Choice Broking

Indian equity indices ended on a negative note, with the Nifty closing below 23,700. The Sensex closed down by 312.53 points or 0.40 percent at 78,271.28, while the Nifty declined by 42.95 points or 0.18 percent at 23,696.30.

On the daily chart, Nifty formed a bearish candle, with the price closing above the 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs), indicating a neutral to positive bias. Immediate support is seen near the 23,500 level, which could be considered a buying opportunity on dips, with short-term targets of 24,000 and 24,250.

India VIX has cooled off from its recent high of 19, reflecting reduced market volatility and improving sentiment. The Relative Strength Index (RSI) is at 56.51, indicating sufficient room for further upside movement.

The Open Interest (OI) data for the monthly expiry suggests strong support at 23,500, followed by 23,300, with the highest Put OI concentrated at these levels. On the upside, the highest Call OI is at 24,000, suggesting significant resistance at this level. A decisive breakout above 24,000 could trigger short covering and fresh long positions, potentially driving the index towards higher levels.

In conclusion, despite the bearish candle formation, the presence of key support near 23,500 and positive sentiment in the broader market could provide opportunities for short-term gains, particularly if Nifty manages to break through resistance levels.

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