The Nifty 50 index opened higher, remained within a specified range, and ended the day with gains. The day started on a positive note after a supportive trade setup; It maintained its gains during the day, oscillating in the 100-point range. Weekly options expiration largely controls the upper and lower ends of the trading range. However, it largely remained on the expected lines.
The headline index ended the day with a gain of 114.15 points (0.73 percent).
As anticipated, the session was largely affected by the weekly options expiration. The maximum call open interest concentration stood at 15,700. This prevented the index from moving closer to this level. Maximum Put Open Interest also held steady at 15,600. This ensured that the index bounced back from that level.
However, in the coming days, the market needs to be approached with a very high degree of caution as the Nifty 50 index is not only slightly overbought, but volatility also remains at a very low level. The current setup increases the chances of the market slipping into some consolidation or seeing a measured corrective move.
The beginning of the day is likely to be mild on Friday. The 15,735 and 15,780 levels will act as immediate resistance, and support is expected at 15,580 and 15,500.
Nifty is now in unknown territory. It achieved a breakout when it surpassed the previous lifetime high of 15,431. In the process, it has increased support. The 15,400-15,431 area now remains the most important support zone for the market in the near term.