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By Chandan TapariaThe Nifty50 index opened positive and witnessed sustained buying interest throughout Wednesday to close with a gain of around 200 points.
It formed a Big Bullish candle for the second consecutive session and recovered around 400 points from its major support at 10,333 level.
The index negated the formation of lower highs and completed 61.80 per cent retracement of the entire down leg from 10,941 to 10,333 levels.
Now, it has to hold above 10,650 to extend its move towards 10,850 and then 10,929 levels, while on the downside support exists at 10,650 and then 10,550 levels.
On the options front, maximum Put open interest was at 10,000 followed by 10,200 while maximum Call OI was seen at 11,000 followed by 10,800 level.
Meaningful Put writing was seen at 10,600 followed by 10,700 level, while there was Call writing at 10,900 followed by 10,800 levels.
The options band signified a broader trading range between 10,500 and 10,929 levels.
India VIX fell sharply by 11.87 per cent to 15.81 level.
It has seen a sharp 22.65 per cent cut in last two sessions, which suggests the bulls are getting a grip on the market with expectation of limited downside.
Bank Nifty opened in the positive and continued its momentum from 25,600 to 26,666 levels in last two sessions.
It formed a Bullish Candle and managed to decisively hold above its 50-day EMA.
Now, it has to hold above 26,250 to extend its gains towards 27,000 level, while on the downside, support is seen at 26,350 and then 26,000 levels.
Nifty futures closed positive with a gain of 1.88 per cent at 10,780 level.
Long buildup was seen in TVS Motor, Hero MotoCorp, Chola Finance and Torrent Pharma while shorts were seen in Dr Reddy’s, Godrej Industries, Jubilant Foodworks and Lupin.
