By Chandan TapariaThe Nifty50 index opened in the positive on Friday, but again failed to hold above the 10,600 level and fell sharply towards the 10,434 mark. The index witnessed sustained selling pressure throughout the day and finally closed near the lowest point of the day. In the process, it formed a Bearish Engulfing Candle on the daily chart.The Nifty50 has been facing a hurdle at its 50-day EMA for last eight sessions and a cluster of supply is visible in the 10,600-10,650 zone. Now, if it sustains below 10,480, then weakness could continue and take it towards 10,333 and then 10,276 levels, while on the upside, the immediate hurdle is seen at 10,550 and then 10,600 levels.On the options front, maximum Put open interest stood at 10,500 followed by 10,000 while maximum Call OI was at 10,600 followed by 11,000. Fresh and meaningful Call writing was seen at strike prices 10,500, 10,600 and 10,700, which restricted its upside momentum, while Put writing shifted to lower strike prices at 10,400 and 10,300. The option band signified a lower trading range between 10,300 and 10,550 levels.India VIX move up 0.38 per cent to 16.37. Volatility again started to inch higher, which gave the bears an upper hand.Bank Nifty formed a Bearish Engulfing Candle on the daily chart, which indicated that the bears are holding a grip on the market. Now, till Bank Nifty sustains below the 25,500 level, fresh selling could be seen towards the recent low of 25,000 and then 24,500 level, while on the upside, a hurdle is seen at the 25,750 mark.Nifty futures closed in the negative with a loss of 1.03 per cent at 10.442. Shorts buildup was seen in all sectors, mainly in metals, PSU banks and auto stocks.(Chandan Taparia is Technical & Derivative Analyst at Motilal Oswal Securities. Investors are advised to consult financial advisers before taking an investment calls based on these observations)