Technical Bits: Bank Nifty likely to take support at 29,600 level

The banking benchmark index Bank Nifty opened the final trading session of the week on a positive note. Thereafter, it soon pared it morning gains and traded in a capped range. However, in the last leg of the session, it moved higher and ended the session above the 29,900 mark with a gain of 0.51 per cent. The price action on the daily timeframe has formed a bullish engulfing candle, while on the weekly time frame, the price action has formed a small body bear candle carrying longer lower shadow. Among the constituents, Bank of Baroda and Axis Bank were the top gainers, while on the flip side, Yes bank and IDFC First bank were the top losers on Friday.

The 14-period daily RSI is currently quoting at 60.18 and it is trading below its 9-day average. The daily MACD stays bearish as it is trading below its zero line. Going ahead, the 20-day Exponential moving average, which is placed around 29,653 is likely to act as an immediate support, while on the upside, the zone of 30000-30,150 is likely to act as a resistance level as downward sloping trendline is placed in this region and sustaining above this level decisively would lead to further acceleration of upward momentum.

Derivatives data suggests that among Bank Nifty Calls, the 30,000 strike price is the most active call for the April 18, 2019 weekly expiry. Whereas among the Bank Nifty Puts, 29,500 strike price is the most active Put for April 18, 2019 weekly expiry. For the April 18, 2019 weekly series, the maximum open interest (OI) outstanding for Calls were at 30,000 strike price and that for Puts were at 29,500 strike price.