Option writers covered their short call positions on weekly Nifty, while others wrote put options at 11,500 and 11,400 levels.
The immediate range of the index based on the value of the 11,500 weekly straddle is 11,375-11,625.
The NSE Nifty gained 81.75 points, or 0.71 per cent, to finish at 11,521.80 on Tuesday. The BSE Sensex ended with a gain of 287.72 points, or 0.74 per cent higher, at 39,044.35. The rally in mid- and small-cap stocks continued with the indices gaining almost 1.5 per cent.
“A conclusive break above 11,562 is a must for the index to rise,” said Hormuz Mali, director, AFco Investments. “11,550 and above is a congestion zone for now.”
The Nifty weekly put-call ratio rose to 1.08 from 0.88 Monday.
The weekly Bank Nifty, which was heavily oversold, saw the open interest PCR jump to 0.82 from 0.58 Monday.
Foreign investors have net sold shares worth 453 crore in the month through September 11, NSDL data show.
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