Bank Nifty: 26780-26680 level likely to act as crucial support

Bank Nifty index settled above 27,000 mark and the price action formed a small body bullish candle with a gap-up opening, on Friday. Among its constituents, Bank of Baroda and IDFC First Bank were the top gainers, while on the flip side, Axis Bank was the top loser on Friday. 

Form the last six weeks, Bank Nifty is trading in contraction consolidation. In the near-term, the zone of 26780-26680 is likely to act as crucial support for index as it is the confluence of 100-day EMA and upward sloping trendline formed by connecting swing lows from January 29, 2019. While on the upside, the zone of 27200-27300 level is likely to act as crucial resistance as downward sloping trendline is placed in this region. The 14-period day RSI is quoting around the level of 51 and it is not able to cross 60 mark since January 10, 2019.

Derivatives data suggests that among Bank Nifty Calls, 27,200 strike price of the March 7, 2019 weekly expiry is the most active call. Whereas among Bank Nifty Puts, 26,800 strike price of the March 7, 2019 weekly expiry is the most active Put. For the March 7, 2019 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.