“The short-term formation is still on the weaker side, but due to the extremely oversold situation, the market registered a technical bounce back.
On the flip side, below 17400, there is a strong possibility of one more leg of correction till 17330-17280,” Chouhan added.
The Nifty50 closed 0.5 percent higher at 17,503.
The NiftyBank closed 0.39 per cent lower at 37,272.
On Option front, Maximum Call OI is at 18000 then 17800 strike while Maximum Put OI is at 17000 then 17300 strike.