The Nifty50 consolidated on Tuesday after 200-point rally seen on the first trading session of the week which was largely led by short coverings.  

Derivative data reflects that at current levels there are a lot of outstanding short position held in Nifty futures along with 10500 & 10600 call strikes.

Despite short covering rally we have not seen unwinding in 10500 calls which indicates that the bearish scenario may continue.

The range of 10,300-10,500 levels will remain crucial in the current expiry and the move is expected to remain volatile along with negative movement, as indicated by option open interest concentration.

If Nifty falls below the 10300 mark, it could correct to 10100 levels on the back of further selling.

However, on the bounce, the index will face strong resistance at 10475-10500 levels.

On the technical ground, the next support is placed around 10300- 10320 levels .