By Chandan TapariaThe Nifty remained in a broader range and witnessed recovery from 10,520 zones to close on a flattish note.

The index formed a Doji candle with long lower shadow, which indicates that decline was being bought into, as it got stuck in range ahead of the expiry week. The index has been making higher highs higher lows on a weekly chart, which suggests continuation of uptrend till any immediate support is not broken decisively.

Now, till it remains above 10,500-10,480 zones, it has potential to move towards 10,630, and then 10,700 levels. On the option front, maximum Put open interest is at 10,500, followed by 10,400 strike, while maximum Call open interest is at 10,700, followed by 10,600 strike.

We have seen minor Put writing at 10,350 and 10,500 strike, while Call unwinding was seen at all the immediate strike prices which is providing room for further up move.

Option band suggests an immediate trading range in between 10,480 and 10,700 zones. India VIX fell down by 5.91 per cent at 12.93.

Decline in VIX suggests limited downside and a consolidative move in the market. Bank Nifty failed to cross above its crucial resistance of 25,250 levels and has been making lower highs lower lows formation on daily chart from last three trading sessions.

It formed a Bearish candle on a daily chart, which implies that sustained selling pressure is seen and it is under performing the Nifty Index.

Now, till it holds below 25,250 levels it could extend its losses towards 24,750, while on the upside major hurdles are seen at 25250 then 25500 levels. Nifty future closed with the gains of 0.16 per cent at 10,595.

Built up long positions were seen in Mindtree, Bata India, SRF, Apollo Hospitals, Infosys, Tech Mahindra, TCS and Torrent Pharma, while shorts seen in Orient Bank, Bank of India, Yes Bank, Union Bank, DHFL, HDFC, PNB, Biocon and Ultratech Cement. (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)