Option buying using collateral money for closing short position


Using collateral amount we can’t do option buying.
My question can we use collateral amount to close the short position by option buying.
for example.
My account has 10 lacs money entirely from collateral no other cash component/equivalent. I used the amount to sell 2 lots of Nifty options . I want to square it off at the end of the day. Since i already have sold position, can i square it off by buying option using collateral money? Thank in advance.