Nifty reclaimed the 16,600 mark on a closing basis on August 24. Recovery in the markets was led by metals, banking and pharma counters.
On the derivatives front, Call writers covered their short positions while Put writers added hefty open interest at 16,500 and 16,600 strikes.
Now, 16,800 would act as strong resistance for Nifty on the higher side while bias is likely to remain in favour of bulls in the upcoming sessions.
The banking index is facing a strong hurdle in the range of 36,000-36,300, above which, the index could extend its journey towards 37,000 level in the coming weeks.