By Chandan TapariaThe Nifty50 index opened with a gap down, but witnessed sustained buying interest throughout the session on Monday before settling near the day’s high. The index recovered sharply from the 10,396 level and formed a bullish Marubozu candle on the daily scale, which implies complete dominance by the bulls.The 50-pack has been making higher highs from last 11 consecutive sessions, implying continuation of the uptrend. As long as it holds above 10,480, it could extend the gains towards 10,580 and then 10,630 levels, while on the downside, supports are seen at 10,480 and then 10,440 levels.On the options front, maximum Put open interest stood at strike price 10,300 followed by 10,400 while maximum Call OI was at 10,700 followed by 10,500. There was significant Put writing at strike prices 10,500 and 10,400, which support shifted higher and Call unwinding was seen at all immediate strike prices, creating room for further rise in the market.The options band suggests an immediate trading range between 10,450 and 10,650 levels. India VIX moved up 0.51 per cent to 14.21. The VIX has to cool down to extend its positive momentum.Bank Nifty opened in the negative but the decline got bought into and the index managed to close comfortably above the crucial hurdle at 25,250 level. The index formed a Bullish Engulfing Candle on the daily chafrt, which means the bulls are holding the grip.Now, the index has to hold and sustain above 25,250 to start the next leg of upward move towards 25,500 and then 25,750 levels, while on the downside, major supports are seen at 25,000 and then 24,750 levels.Nifty futures closed in the positive at 10,545 with a 0.53 per cent gain. Long buildup was seen in DCB Bank, Arvind, MindTree, Ajanta Pharma, Pidilite Industries and TVS Motor, while shorts were seen in Infosys, Shriram Transport Finance, Tata Motors, Jet Airways, Tata Communication and BEL.(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)