The Nifty50 witnessed volatility in morning session, but gained strength in afternoon to close above crucial 11,600 mark due to buying across sectors.

The index formed bullish candle on the daily charts again as closing was higher than opening levels.

Experts feel the index has to sustain 11,600 levels in coming sessions to march towards its recent high, otherwise the consolidation is likely again.

If someone is long then he/she should hold with a stop loss below 11,516 and look for targets close to 11,700, while traders with high risk appetite can go for fresh buying on intraday dip, if any in the first two hours, around 11,550 levels with a stop loss below 11,500, Mazhar Mohammad of Chartviewindia.in advised.

The Nifty50 opened flat at 11,538.45 and hit an intraday low of 11,516.75 amid volatility, but gained strength in afternoon to hit a day's high of 11,618.10 in late trade. The index closed at 11,604.50, up 82.70 points.

"Bulls appear to be slowing strengthening their grip once again as Nifty50 closed above its near term hurdles present around 11,600 levels. Hence, if the index sustains above 11,600 levels in next trading session, then it can initially extend its upswing towards 11672. In case if it manages to stabilise above 11,672 then bulls will challenge the recent top of 11,794 levels," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory at Chartviewindia.in told Moneycontrol.

Meanwhile it is critical for the index to sustain above 11,516 levels on closing basis in next couple of trading sessions to retain bullish bias, he feels.

In case if it fails to sustain and registers a close below 11,500 levels then it can once again slip into consolidation phase with negative bias, according to Mazhar.

India VIX fell by 4.56 percent from 20.60 to 19.66 levels. VIX has fallen below 20 levels with its lowest closing in last 13 trading sessions.

Option data indicated that the expected trading range for Nifty50 has been shifted higher to 11,400 to 11,800 levels, from 11,300-11,700 levels earlier.

On option front, maximum Put open interest was seen at 11,500 followed by 11,000 strike, while maximum Call open interest was at 12,000 followed by 11,600 strike. Marginal Call writing was seen at 11,900 then 12,000 strike while meaningful Put writing was seen at 11,500 then 11,600 strike.

Bank Nifty managed to hold key support of 22,222 levels and recovered by around 400 points from lower levels. However it has been underperforming the Nifty index, but multiple support near to 22,000 has been pushing it to higher levels.

The index after hitting an intraday high of 22,659.40, closed 107.85 points higher at 22,573.50 and formed bullish candle on the daily charts.

"Bank Nifty has been hovering near to its 50 DEMA and requires to hold above the same to get a bounce or stability in the rate sensitive index. Now it has to continue to hold above 22,500 to witness some stability and a move towards 22,750 then 23,200, however a hold below 22,000 could drag the rate sensitive index towards 21,750 and 21,500 levels," Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services told Moneycontrol.

Positive setup was seen in Ramco Cements, Dr Reddy's Labs, M&M, Hindalco, Cadila Healthcare, Britannia Industries, Infosys, Lupin, Divis Labs, Wipro, Cipla, Jubilant Foodworks, Mindtree and UltraTech Cement while weakness was seen in NTPC, Tata Power, PVR, Bharti Infratel, ONGC etc, he said.