The 10,800 level saw the highest concentration of Call open interest throughout the day. The highest Put OI shifted to the 10,700 level, which ensured that the index settles between these two marks. Nifty has again faced resistance at the rising trend line pattern resistance that lies just below the 200-DMA. This showed that the 10,800-10,880 zone remains the stiffest resistance for the index.
The opening levels and the trajectory of Friday’s session would be crucial to watch. It remains to be seen if Nifty attempts to move towards the 200-DMA, which now stands at 10,872. The 10,780 and 10,835 levels will act as key resistance, while supports will come in at 10,650 and 10,570 levels.
All in all, there may be a few intermittent bounces in Nifty, but for a sustainable rally to occur, the index will have to move past and close convincingly above the 200-DMA.
The 10,800-10,880 zone will continue to offer strong resistance to up-moves if any. We recommend chasing the up-moves in a highly stock-specific manner and keep guarding profits at higher levels.