Bank Nifty in wait and watch mode

All eyes will be on the monetary policy outcome wherein the RBI is expected to maintain the status quo on interest rates. Bank Nifty bounced sharply in the expiry week and witness profit booking at higher levels. Keeping price above the crucial short-term moving average, i.e. 21-days Exponential moving average would be necessary for the continuation of this upside rally. 

The 14-period day RSI is quoting around 59.75 and it has recently given negative crossover. Other indicators and oscillators were consolidating in a range during the last two trading sessions. 

Among Bank Nifty calls, 26,800 strike price of the December 6, 2018 weekly expiry is the most active call. Whereas among Bank Nifty puts, 26,500 strike price of the December 6, 2018 weekly expiry is the most active put. For the December 6, 2018 weekly series, the maximum OI outstanding for calls were at 27,000 strike price, and that for puts was at 26,500 strike price. 

For any intermediate decline, Rs. 26,400 will act as a short-term support followed by Rs. 25,950. On the upside, Rs. 27,100 will act as near-term resistance followed by Rs. 27,300.