On December 8, the Nifty ended a two-day losing streak and closed the weekly expiry session just above the crucial 18,600 level.
After opening flat at 18,571, the index traded in the 18,625-18,537 range before closing 49 points higher at 18,609.
On the daily charts, the index formed a bullish candle and found support at 18,500. If the support holds in the coming sessions, the index could move towards 18,700, according to experts.
"Except for the narrowing of the trading zone, there is no significant change in the chart structure. In terms of levels, 18,500 is a critical level to keep an eye on on the downside, and the market is calm until it is protected "Angel One's Senior Analyst - Technical & Derivative Research, Osho Krishan, stated.
A decisive close above 18,700 will cheer market participants on the higher end. In the future, "we reiterate that we will keep a close eye on the mentioned levels and continue to focus on thematic movers for better trading opportunities," he said.
On the option front, the highest Call open interest was at the 19,000 strike, followed by the 20,000 strike, with Call writing at the 19,000 strike, then the 19,100 strike, while the highest Put open interest was at the 18,000 strike, followed by the 18,500 strike, with Put writing at the 18,300 strike, then the 17,000 strike.
According to the data, the Nifty will most likely trade in the 18,500-19,000 range in the coming days.
The volatility index India VIX fell 4.83 percent to 13.40, providing relief to bulls.
The Bank Nifty opened higher at 43,142 and continued to rise after some initial volatility, reaching a record high of 43,641. The banking index closed at a record high of 43,597, up 498 points from the day before. On the daily charts, it formed a long bullish candle.
"On a closing basis, the bulls came back strong and knocked out the bears with full force, surpassing the 43,500 barrier. On the upside, the index confirms the continuation of the uptrend towards 44,000-44,600 levels "According to Kunal Shah, Senior Technical Analyst at LKP Securities. The lowest level of support is 43,000.
The index remains in a buy mode, and any dips should be used to initiate new long positions, according to the expert.
The broader markets finished higher as well, with the Nifty midcap 100 index up 0.6 percent and the smallcap 100 index up 0.3 percent.
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