By Chandan TapariaThe Nifty50 index formed a Hammer candle on Wednesday, as it fell to 10,355 and then recovered to close above 10,400.

It engulfed the trading range of last session but witnessed buying interest from lower levels. Price patterns indicated absence of buying at higher levels while every decline is being bought into.

This suggests a positive to rangebound move in the market. Now, while on the downside, supports are seen at 10,350 and then 10,333 levels. On the options front, maximum Put open interest stood at strike price 10,000 followed by 10,300, while maximum Call OI was at 10,500 followed by 10,600.

There was significant Put writing at 10,400 and 10,300 levels, which shifted its support on the higher side while Call writing was seen at 10,600 followed by 10,400 levels.

The option band suggests a broader trading range between 10,300 and 10,500 levels. India VIX moved up 1.52 per cent to 14.72.

VIX has to remain between 13.50 and 13 to start the fresh leg of upmove. Bank Nifty finally negated the formation of higher highs of last six sessions and remained under pressure for most part of the day.

It formed a bearish candle on the daily chart, which means supply is visible at higher levels. Now an immediate uptrend could remain intact only as long as it holds above 25,000 level, while on the upside hurdles are seen at 25,250 and then 25,500 levels.

If Nifty slips below 25,000 level, then a small dip could be seen towards its next support at 24,750 level. Nifty futures closed in the negative at 10,416 with a marginal loss of 0.05 per cent.

Long buildup was seen in Bata India, IRB, Amara Raja Battery, Exide India, McDowell, Hindalco, Jubilant Foodworks, Hexaware, Jindal Steel, HUL, Eicher Motor, TCS, KSCL and Titan while shorts were seen in BPCL, IOC, TVS Motor, Marico and Engineers India. (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)