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Below the Quote on Sensex by Sachin Gupta, VP – Technical Research at Choice Equity Broking Private Limited

"Sensex closed at 72,382.47, gaining 472.77 points (+0.66%). The index opened at 72,340.95, touched a high of 72,631.93 and a low of 71,840.18. Despite a small drop from the higher levels, the benchmark faced buying pressure near the day’s low and moderated towards the close, while still managing to end firmly above the 72,000 mark.

From a price-action perspective, the 71,800–72,000 zone remains the immediate support area, while 72,600–73,000 is the key resistance band. The broader trading range stands between 71,800 and 73,000, indicating that the index is still in a consolidation phase after the recent decline. The overall bias has improved to sideways, with a sustained move above 72,600 required for further recovery.

Sector-wise, Consumer Durables, Auto, Capital Goods, Bankex and Telecom were among the key sectors showing strength during the session. PSU Banks, Services and Financial Services also witnessed buying interest, supporting the broader market recovery. On the other hand, Hospitals, Healthcare and Information Technology remained among the key laggards, limiting the overall upside in the benchmark.

Technically, the Sensex opened with a 431-point gap-up and initially moved higher, but the previous 72,600 resistance zone triggered profit booking and the index gradually slipped from the day’s high. A subsequent recovery from lower levels and the close above the important 72,000 mark provide some relief to the near-term structure. The RSI stands at 30.57, marginally below its RSI-based MA of 30.83, indicating that momentum remains weak despite the recovery and the index is still close to the oversold zone.

Options data shows the highest Put OI at 72,200, followed by 72,000, where option writers are active and may provide major support. On the higher side, 72,500 Call writers, followed by 73,000 Call writers, remain active and are likely to restrict the upside. The PCR at 1.14 indicates relatively stronger Put positioning, suggesting some support at lower levels. A shift in OI concentration around 72,000 and 72,500 will be important for the next directional move.

Overall, the Sensex has shown some recovery after the recent decline, but the broader structure remains sideways until a decisive breakout occurs. Holding above 71,800–72,000 could sustain the recovery and allow the index to retest 72,600–73,000, while rejection from the resistance zone may keep the index range-bound. A sustained close above 72,600 would improve the short-term technical setup, whereas a break below 71,800 could revive selling pressure. Traders should therefore monitor the key support, resistance and OI levels closely before taking fresh directional positions."

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