The Nifty took resistance near its previous high of 10,137 on Wednesday. It lost all the shine and closed at 10,079.30 with loss of 13.75 points.

This week, Nifty showed strength after breaking above its strong resistance and psychological levels of 10,000 with good volumes.

We have witnessed a strong short covering in the index, which took it near its previous high of 10,137. Now, if index holds above 10,000, we may see more upside in the index but it still has to break above 10,137 convincingly.

On the derivative front, highest open interest was seen in 9,900 PE and 10,000 PE which will act as a strong support in this expiry, whereas on the higher side 10,200 CE and 10100 CE has highest open interest. So 10,200 will be strong resistance for the September expiry.

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In September series, we have witnessed strong Put writing in 9900 PE and 10,000 PE which suggests strong upside in the index in the near term.

For the upcoming sessions, 10,000 would be overall trend deciding level. We recommend initiating long calls on every dip in the index with keeping a stop loss below 10,000 on a closing basis and target would be 10140-10200.

Above 10200, the next logical target for the index stands at 10500-10600 by December end. Investors need to use stock specific approach to trade in coming sessions.