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NEW DELHI: The Nifty50 index opened positive but failed to hold above 11,000 level and corrected towards the 10,935 mark on Thursday.
The index recently saw a breakout above the 10,929 mark, but was unable to hold the gains.
Supply was visible at higher levels.
The index has formed a bearish candle on the daily chart, but at the same time, every decline also got bought into.
Now, if Nifty manages to hold above 10,950, only then positive to rangebound move can be seen towards 11,000 and then 11,080 levels, while a hold below 10,929 could confirm a short-term Double Top pattern for a potential decline towards 10,888 and then 10,835 levels.
On the options front, maximum Put open interest was at 10,800 followed by 11,000 while maximum Call OI was at 11,000 followed by 11,100.
There was Call writing at 11,000 followed by 11,300, while Put writing was seen at 10,900 followed by 11,000 levels.
The options band signified an immediate trading range between 10,880 and 11,080 levels.
India VIX moved down 0.66 per cent to 13.59 level.
Bank Nifty opened with a gap up, but failed to hold above 27,000 and remained rangebound for most part of the session.
It faced a hurdle near the 27,000 mark while major support existed near the 26,650 level.
The index has to hold above 26,750 to witness an upward move towards 27,000 and then 27,165 levels, while on any decline, major support was seen at 26,650 and then 26,400 levels.
Nifty futures closed flattish to positive with 0.03 per cent gain at 10,983.
Long buildup was seen in Bajaj Finance, Apollo Tyre, Titan, RIL, Bharti Airtel, Just Dial and Yes Bank while shorts were seen in Hindalco, Tata Global, Arvind, Siemens, Cipla and Shriram Transport Finance.
(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)
