By Chandan TapariaThe Nifty50 index opened with a gap up and headed towards the 10,818 level by surpassing the previous hurdle at 10,770 level.
However, it slipped from higher levels in the last hour of the session and closed near the crucial 10,770 marks.
Now, it has to continue to hold above 10,720 to witness an upward move towards 10,800 and then 10,888, while on the downside, major supports are seen at 10,650 and then 10,620 levels.On the options front, maximum Put open interest exits at 10,600 followed by 10,200 and 10,500, while maximum Call OI was at 11,000, followed by 10,800 and 10,700.
Significant Put writing was seen at 10,700 and 10,800 while Call unwinding was seen at all immediate strike prices.
Options data suggested a broader trading range between 10,650 and 10,850 levels for the coming sessions.
India VIX moved up 1.81 per cent to 12.55 level.
The overall lower volatility with higher Put-Call Ratio suggests an overall bullish bias in the market.Bank Nifty closed positive, but formed a Shooting Star candle as it slipped from its hurdle at 26,750 level.
The index has been respecting its rising support trend line, which is formed by connecting swing lows of 24,753, 25,662, 25,668 and 26,069 levels.
Now it has to hold above 26,250 to witness an upward move towards 26,500 and then 26,750 levels, while on the downside, immediate supports are seen at 26,100 and then 25,950 levels.Nifty future closed with the gain of 0.70 per cent at 10,761.
Long buildup was seen in UBL, Just Dial, SAIL, Torrent Power, Canara Bank, OFSS, Tata Steel and Jindal Steel while shorts were seen in STAR, Voltas and Godrej Industries.(Chandan Taparia is Technical Derivative Analyst at Motilal Oswal Securities.
Investors are advised to consult financial advisers before taking an investment calls based on these observations)