The Nifty50 after initial volatility remained higher for the rest of the session and snapped its two-day losing streak to end at a record closing high on February 11, backed by buying in index heavyweight Reliance Industries and positive global cues.
After opening lower at 15,073.25, the Nifty hit an intraday low of 15,065.40 but after initial weakness, the index gained strength. It hit the day's high of 15,188.50 before closing 66.80 points higher at 15,173.30.
The index formed a small bullish candle on the daily charts as the closing was higher than the opening level. Experts expect consolidation to continue in the coming sessions, unless the Nifty decisively goes past 15,250.
Traders should remain neutral on the long side for the coming day, whereas a close below 15,000 can provide positional shorting opportunity, Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory at Chartviewindia.in told Moneycontrol.
"Unless the Nifty closes above 15,250 levels, further expansion on the upside shall not be expected. However, on such a close, initial targets can be towards 15,500 levels," he said.
In the near term, it is critical for the index to sustain above 14,977 as a breach of this can trigger a corrective downswing with potential targets towards 14,500, Mohammad said.
In between, markets may remain volatile and rangebound in the 15,250– 15,000 range, he said.
India VIX declined by 3.78 percent from 23.95 to 23.04 levels.
On the options front, maximum Put open interest was seen at 14,000 followed by 13,500 strike, while maximum Call open interest was seen at 16,000 followed by 15,500 strike.
Put writing was seen at 14,500 and 15,000 strikes, while Call writing was visible at 16,300 and 16,100 strike. Option data indicated that the Nifty could see an immediate range of 15,000 to 15,300 levels.
The Bank Nifty opened negative at 35,687.25 and moved sideways, underperforming for the last few sessions. The banking index did not see much momentum and settled the day 31 points loser at 35,752.10, forming a bullish candle on the daily scale as it closed higher than its opening levels.
"The index is making lower highs from the last two sessions. The index has got in the range between 35,500 to 36,600 levels. It has to hold above 35,500 to witness a move towards 36,000 and 36,500 while on the downside support is seen at 35,500 and 35,250 levels," Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services said.
On the stock front, a bullish setup was seen in Hindalco, Max Financial Services, Reliance Industries, Motherson Sumi, M&M Financial, Mahanagar Gas, SRF, GAIL India, Dabur, Sun Pharma, Indraprastha Gas, Power Grid, Bajaj Finance and HCL Technologies. Weakness was seen in MRF, Aurobindo Pharma, Titan Company, NMDC, Bank Baroda, Zee Entertainment and Sun TV Network, he added.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.