Bank Nifty: Zone of 19,700-19,500 likely to act as crucial support

Banking Benchmark index-Bank Nifty traded in a range of 1,960.60 points during the week. The index has ended the week with a gain of 683.55 points or 3.30 per cent and formed a bullish candle with a long lower shadow. Further, out of the five trading sessions, Bank Nifty ended in green in three of them. Among the constituents of Bank Nifty, Bandhan Bank and Federal Bank were the top gainers, while on the flip side, IndusInd Bank and Kotak Mahindra Bank were the top losers on Friday.

Currently, the index is trading above its weekly pivot and short-term moving averages, i.e. 20-day EMA and 50-day EMA. The leading indicator, 14-period daily RSI, is currently quoting at 59.61 and trading above its nine-day average. On the daily timeframe, +DI is above –DI.

Talking about the crucial levels to watch out in the coming week, the zone of 21,800-21,970 on the upside will be a major hurdle for the index while, on the downside, the zone of 19,700-19,500 will be a crucial support for the index.

The derivatives data suggest that among Bank Nifty Calls, 22,000 strike price is the most active call for June monthly expiry. Among Bank Nifty puts, 20,000 strike price is the most active put for June monthly expiry. For June monthly series, open interest wise put-call ratio (PCR) is at 1.15.

For June monthly expiry, highest call open interest is at 22,000 strike with 6,22,520 OI, followed by 23,000 strike with 5,04,760 OI. On the put side, 20,000 strike has 7,94,140 open interest, which is the highest. The highest change in open interest was seen at 21,000 put of June monthly expiry with 2,76,660 OI and on the call side, 22,500 call has seen the highest change in open interest with 2,41,220 OI. The total call open interest for June monthly series is 49,31,180 and the put open interest is 56,50,640. The current derivative data suggests that Max Pain is at 21,000 for the monthly expiry.