The Nifty50 opened positive and continued its positive momentum towards the 10,850 level for the third consecutive session. However, it witnessed minor profit booking at higher levels and formed a Small Bearish Candle on the daily scale after forming higher highs and higher lows in last two sessions.
Now, Nifty has to hold above 10,700 to extend its move towards 10,880 and 10,929 levels, while on the downside support exists at 10,650 and then 10,600 levels.
On the options front, maximum Put OI was seen at 10,000 followed by 10,200 levels, while maximum Call OI was seen at 11,000 followed by 10,900. There was meaningful Put writing at strike price 10,800 followed by 10,700, while Call writing was seen at strike price 10,900 followed by 11,000. The option band signified a broader trading range between 10,550 and 10,929 levels.
India VIX fell 3.24 per cent to 15.29 level. It has seen a sharp cut of 25.89 per cent in last three sessions, which suggests the bulls are now getting a grip on the market with the expectation of limited downside.
Bank Nifty opened with a gap up, but remained highly volatile throughout the session. It formed a Doji kind of candle on daily scale, as it closed near its opening mark. Now it has to hold above 26,666 to extend its gains towards 27,000 and then 27,200 levels, while on the downside support was seen at 26,500 and then 26,350 levels.
Nifty futures closed positive at 10,819 with a gain of 0.33 per cent. Long buildup was seen in Colgate-Palmolive, Godrej Consumers, Shriram Transport and IndiGo while Shorts were seen in Godrej Industries, Mindtree, Sun TV and Concor.