Bank Nifty buzzing ahead of Budget 2019

Ahead of Interim Budget 2019, Bank Nifty has formed sizeable bullish candle on Thursday and also managed to close above its important short term moving average, i.e. 20-day EMA and 50-day EMA, which suggest bulls were in dominant position. Among the constituents, Axis Bank and Kotak Mahindra Bank were the top gainers, while on the flip side, Yes Bank and Bank of Baroda were the top loser on Thursday.

For any immediate decline, 50-day EMA is likely to act as support which is currently placed at 26,930 level. While on the upside, the index is likely to face resistance at 27,500, followed by 27,700. Among the momentum indicators, the 14-period RSI is quoting at 53.69, and it has recently given positive crossover and stochastic has also given positive crossover in the oversold zone, which depicts positive momentum.

Derivatives data suggests that among Bank Nifty Calls, 27,500 strike price of the February 7, 2019 weekly expiry is the most active call. Whereas among Bank Nifty Puts, 26,500 strike price of the February 7, 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 28,000 strike price and that for Puts were at 26,500 strike price.