Breaking below 10,750 levels could lead to pressure in the market.
Market got off to positive start this week with a gap-up opening and building on last week’s gains. The push in last hour of trade saw the Nifty closing near the highs of the day at 10,888, up by 0.77 percent.
Broader market indices, BSE Midcap and Smallcap, gained 0.9 percent and 0.4 percent, respectively. Market breadth on NSE was 4:3 in favour of advances. After two days of consolidating, index has given breakout on the upside.
Now holding above 10,840 levels, Nifty is expected to test 10,941 which is the recent high. Crossing above 10,941 levels on sustainable basis and Nifty can rally towards 11,089 levels which is the 61.8 percent Fibonacci retracement level of the whole fall 11,760-10,005.
On the downside, supports are seen at 10,840 and 10,750 levels. Breaking below 10,750 levels could lead to pressure in the market. In Nifty options, maximum open interest for Puts is seen at strike price 10,000 followed by 10,500, while for Calls, it is seen at strike price 11,000 followed by 10,900.
Put writing was seen at strike price 10,900 and 10,800 while Call unwinding in 10,800 and 11,000 suggesting supports are shifting higher.
India VIX declined 4 percent to close at 14.54 levels. After consolidating at higher levels, VIX has fallen by 24 percent for the month which is positive for the market.
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