Bank Nifty: 26,650-26,500 level likely to act as support

Bank Nifty formed an outside bar resembling a Bearish Engulfing pattern on the daily time frame, which indicates that the bears were in dominant position.The crucial short-term moving average, i.e., 21-day exponential moving average is likely to act as short-term support which is currently placed around 26,661, failure to hold this support would lead to further correction up to the level of Rs. 26,000.

The 14-period RSI cooled off after touching 65 zone and at present, it's reading 55.92. The RSI is trading below its 9-day average and it is in a falling mode, which indicates further downside momentum.

Derivatives data suggests that among Bank Nifty Calls, 27,500 strike price of the December 27, 2018 weekly expiry is the most active call. Whereas among Bank Nifty Puts, 27,000 strike price of the December 27, 2018 weekly expiry is the most active Put. For the December 27, 2018 weekly series, the maximum open interest (OI) outstanding for Calls were at 27,500 strike price and that for Puts were at 27,000 strike price.