Options data suggests heavy call option writing in Nifty index across strikes ranging from 22,900 to 23,500. The zone of 22730-22780 will act as crucial support for the index.
Derivatives and technical parameters indicate a positive setup for Bank Nifty to test 49,500 in the short term and likely to test 50,000 in the coming fortnight.
A breach of the 22,550 spot Nifty support represents a negative/cautionary signal, which opens the doors for a downside target of 22,300. Recovery hopes are contingent upon the Nifty staging a comeback above 22,600.