Bank Nifty resistance at 29525 to 29570 level

The banking benchmark index Bank Nifty is moving in the sequence of higher highs since Monday. It has gained almost 1077 points or 3.84 per cent and the price action has formed a sizeable bullish candle on the weekly scale. Among the constituents of Bank Nifty, Yes bank and RBL bank were the weekly top gainers, while on the flip side, Bank of Baroda and Federal Bank were the weekly top losers.

In the current week, the index has managed to close above its weekly pivot and long-short term moving averages. Among the momentum indicators, the leading indicator 14-period daily RSI is currently quoting at 55.86 and it is trading above its 9-day average. The daily stochastic oscillator is also suggesting some bullish strength as %K is above the %D.

Going ahead, the index needs to cross the hurdle posted by the zone of 29525-29570 as it is the 50 per cent Fibonacci retracement level of the recent downward rally that started from September 23 to October 07, 2019. On the downside, the level of 28602-28538 is likely to act as strong support as it is the confluence of short term 13-day EMA and 20-day EMA level.

Derivatives data suggests that among Bank Nifty Calls, 29,500 strike price of the October 24, 2019 weekly expiry is the most active call. Among Bank Nifty Puts, 28,500 strike price of the October 24, 2019 weekly expiry is the most active Put. For the October 24, 2019 weekly series, the maximum open interest (OI) outstanding for Calls were at 30,000 strike price and that for Puts were at 28,500 strike price.