witnessed profit booking on Wednesday after Nifty rallied more than 10 per cent in the last three trading sessions after government’s big relaxation on slashing corporate tax. The index, however, failed to hold the 11,500 level and closed at 11,440.20, shedding 148 points. Apart from IT, all the indices closed in the red. Nifty Bank closed at 29,586.05 i.e., 503.62 points lower from the previous day’s closing.
As per option data for the next week, 11,500 level will remain critical as highest put and call OI stands here. Put unwinding is evident on strikes ranging from 11,500 to 11,600 which shows weakening of support at 11,500. Call writing at 11,500 shows Nifty to face stiff resistance. Traders should continue keeping a positive bias for markets
as 200-day and 50-day EMA stands in the zones of 11,250 and put OI at 11,400 will act as major support, but we can expect more profit booking if 11,400 level is breached.