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By Chandan TapariaNifty50 opened positive, but failed to hold onto gains above the 11,800 level and drifted towards 11,740. The index form

ed a Bearish Belt Hold or Dark Cloud Cover pattern on the daily scale, while small bullish candle on the weekly chart.However, Nifty has been making higher highs higher lows from the last four trading sessions, and till it holds above 11,720, it can extend momentum towards 11,888. On the downside, support is seen at 11,666 and then 11,550.On the options front, maximum Put OI was at 11,500 followed by 11,000 strike while maximum Call OI was at 12,000 followed by 11,800 strike. Put writing was seen at 11,400 followed by 11,650 strike, while Call writing was at 11,800 followed by 12,000 strike.Option band signifies a shift in higher trading range of 11,600-11,900 zone.India VIX moved up by 4.48 per cent to 22.66 level. Sudden spike in VIX indicates limited upside with volatile swings. However, higher VIX may even support the market to continue its momentum.Nifty Bank made a new lifetime high of 30,669, but failed to hold above 30,500 and declined sharply towards the 30,150 level. The index erased the gains of the previous session and formed a Bearish Engulfing like pattern on the daily scale and negated it higher highs higher lows formation after three sessions.The index has to continue to hold above 30,250 to witness an upmove towards lifetime high of 30,669, while on the downside major support is seen at 30,000.Nifty futures closed with a loss of 0.49 per cent at 11,766. Built-up of long positions were seen in IndiGo, Max Financial Services, Wipro and Tata Motors while shorts were seen in JustDial, Hexaware, Tata Elsxi and Tata Chemical.(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)