The Nifty closed above its 100-Day Moving Average (DMA), breaching the 4630-4660 range, it traded in early trade on Wednesday.

Though the index has pared all of its Tuesday’s losses, the November futures still closed at a discount to the Nifty.

Moreover, the decline in the open interest and volume of the November future along with the recovery in the index indicates that weakness could persist for some more time.

However, an improvement in the November Put Call Ratio ( PCR) from 0.82 to 1.04 accompanied with an average 30% rise in November puts of 4400-4600 strikes indicates that 4600 would be a strong support for the moment.

Against this backdrop, if the Nifty manages to hold on to 4630 on the downside, it could rise to 4800, which is the resistance developed due to a trendline joining the Nifty’s intermediate highs during June-August 2009.

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