Nifty level remains low, positive movement expected

Thursday’s trading hours so far have seen Nifty at a low level as of 1100 hours. The index was trading at 9,938, up by 40 points. Market observers believe that if the index holds above the 9,930 level it may experience a fresh upward movement.
 
The movement in the derivatives market supports this view. The maximum addition of open positions was seen at the strike level of 9,900, followed by 10,200 and 10,000 for call options while the strike level of 9,900 was followed by 9,800 and 9,700 for put options of August series. 
 
There was buying activity for August series’ call options at strike levels of 9,900, 10,000 and 10,200 whereas the maximum put writing was seen at a strike level of 9,900, 9,800 and 9,700. The put call ratio was at 1.04, indicating bullish sentiments. The August Nifty futures premium narrowed to 4 points. It had closed at a premium of 7 points in the previous trading session.
 
On the upper side, a resistance level may be placed around the 21-day moving average of 9,958 while on the downside, support is seen at the level of 9,850 and the next support is placed around the level of 9,830.