Bank Nifty: 26300-26400 level is likely to act as crucial support

The index Bank Nifty extend the southward move for the seventh consecutive session. On Friday, the Bank Nifty settled below 26800 mark and the price action formed bearish candle with longer lower shadow. Among the constituents, IDFC First Bank was the top gainer, while on the flipside, Punjab National Bank and Bank of Baroda were the top losers on Friday.
 
For any immediate decline, the zone of 26300-26400 is likely to act as crucial support for the index, as it is the confluence of double bottom and 200-day exponential moving average. While on the upside, the 50-day exponential moving average is likely to act as resistance, which is currently placed at 27,000 level. The 14-period day RSI is currently quoting around 41.96 and is tilted southward, which suggests negative bias.
 
Derivatives data suggests that among Bank Nifty Calls, 27,000 strike price of the February 21, 2019 weekly expiry is the most active call. Whereas among Bank Nifty Puts, 26,500 strike price of the February 21, 2019 weekly expiry is the most active Put. For the February 7, 2019 weekly series, the maximum open interest (OI) outstanding for Calls were at 27,000 strike price and that for Puts were at 26,000 strike price.