Bank Nifty resistance at 32,500 to 32,620 level

The Bank Benchmark index, Bank Nifty, traded in a range of 1,447.70 points during the week. The index has ended the week with a minor gain of 28.15 points or 0.08 per cent and formed a small body big lower shadow candle. It indicates that all the supply was absorbed and lower level were used for accumulation.

Among the constituents of Bank Nifty, Kotak Mahindra Bank and HDFC Bank were the top gainers while, on the flip side, Yes Bank and RBL Bank were the top losers on Friday.

Going ahead, the zone of 32,500-32,620 is likely to act as a crucial resistance. While on the downside, the zone of 31,950-31,890 is likely to act as immediate support as the short-term moving averages, that is, 13-day EMA and 20-day EMA are placed in that region. The daily MACD stays bearish, as it is trading below its zero line and the leading indicator RSI is within the downward channel.

Derivatives data suggests that among Bank Nifty Calls, the 32,500 strike price is the most active call for the January 16, 2020, weekly expiry. Whereas among the Bank Nifty Puts, 32,000 strike price is the most active Put for January 16, 2020, weekly expiry. For the January 16, 2020, weekly series, the maximum open interest (OI) outstanding for Calls was at 32,500 strike price and, for Puts, it was at 31,500 strike price.