"For the time being, it seems traders would do well by focusing on stock specific opportunities rather than initiating positional trades on index," said Mazhar Mohammad of Chartviewindia.in.
The Nifty50 remained in northward trajectory for majority of the session and closed above 10,400 mark on July 1 amid hopes that economic activity may be stabilising.
The index came out from its four-day consolidation zone and formed bullish candle on daily charts.
Experts feel the index needs to surpass its recent high of 10,553 to start a strong uptrend.
"For the time being, it seems traders would do well by focusing on stock specific opportunities rather than initiating positional trades on index," said Mazhar Mohammad of Chartviewindia.in.
India VIX fell by 3.44 percent to 28.11 levels.
The Nifty50 opened higher at 10,323.80 and touched an intraday low of 10,299.60 amid volatility. The index gained strength in late morning deals and touched a day's high of 10,447.05 in afternoon, before signing off the session at 10,430, up 127.90 points or 1.24 percent.
"Despite Nifty50 made an attempt to breakout above the last 4-day old consolidation zone, present between 10,409 – 10,195 levels, today's trading range remained narrower with 147 points. Hence, the sustainability of this upmove remains somewhat doubtful but trading above 10,299 levels one can remain hopeful of initially targeting 10,553 levels and beyond that test of its 200-day moving average can't be ruled out whose value is placed around 10,893 levels," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory at Chartviewindia.in told Moneycontrol.
"In case if Nifty fails to sustain above 10,299 levels then again it may slip into sideways zone making itself more vulnerable for a sell-off. In that scenario weakness should be confirmed on a close below 10,200 levels," he said.
Option data suggests that the Nifty could trade in an immediate range of 10,200 to 10,600 levels, said Chandan Taparia of Motilal Oswal Financial Services.
Maximum Put open interest was at 10,000 followed by 9,000 strike, while maximum Call open interest was at 11,500 followed by 11,000 strike. Call writing was seen in 10,500, then 11,000 strike while Put writing was seen at 10,000 then 10,400 strike.
The Bank Nifty opened marginally lower at 21,354.10, but immediately witnessed strong buying momentum which continued throughout the session to extend its gains towards 22,061.60, an intraday high.
The index closed 607.45 points or 2.84 percent higher at 21,977.60 and formed a bullish candle on daily scale and started to form higher highs – higher lows from past two trading sessions.
"It relatively outperformed the benchmark index and finally gave a consolidation breakout after four trading sessions above 21,800 levels. Now it needs to hold above 21,500 to witness an upmove towards recent swing high of 22,500 then 22,750-23,000 zone while on the downside supports are seen at 21,250 then 21,000 levels," Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services said.