Bank Nifty bounces from trendline support

Bank Nifty has given a bounce from the edge of the rising trendline support formed by joining swing lows from December 11, 2018, on the daily time frame. This coincides by the index’s short-term moving average, i.e. 21-Day exponential moving average, which is currently placed at 26908.70 level.

The 14-period RSI cooled off after touching 60 zone and at present, it's reading 57.35. The Average Directional Index (ADX) indicator on the daily time frame is quoting around 8.88, which suggests there is no strength in any directional momentum. 

Derivatives data suggests that among Bank Nifty Calls, 27,500 strike price of the January 10, 2019 weekly expiry is the most active call. Whereas among Bank Nifty Puts, 27,000 strike price of the January 10, 2019 weekly expiry is the most active Put. For the January 10, 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.

For any intermediate decline, Rs. 26,900 will act as short-term support, followed by Rs. 26,550. While, on the upside, Rs. 27,400 will act as near-term resistance.