The session was dominated by the expiry of weekly options contracts. The 11,200 levels had the highest concentration of Call Open Interest for the most part of the day, while maximum PUT OI concentration was at 11,100, which ensured that Nifty rebounds from those levels. The RBI policy was much on the expected lines and failed to cheer the market.
Despite such rangebound moves, volatility decreased as volatility gauge INDIA VIX came off 1.80 percent to 23.1425.
Friday’s session is likely to see a tentative start and the 11,245 and 11,285 levels are likely to act as key resistance points. Supports come in at 11,110 and 11,045 levels.
Nifty’s inability to sustain at higher levels showed a lack of comfort. This was evident from the market breadth, which has not been so strong compared with the kind of up-moves the market has witnessed. Amid such a technical setup, the 11,300-11,350 zone continues to remain a strong resistance point. No sustainable up move shall occur unless Nifty moves past these levels convincingly. Approach the market cautiously at these levels.