Bank Nifty: 21,600-21,970 zone to act as crucial resistance
Banking benchmark index-Bank Nifty has gained almost 1,737.25 points or nine per cent in the last five trading sessions. Further, out of the five trading sessions, Bank Nifty ended in green in four of them. On the weekly chart, the index has formed a sizeable bullish candle, carrying a higher high and higher low, as compared to its prior bar.
With this upward momentum, the index has also managed to close above its 50-day EMA level after 71 trading sessions. The leading indicator, 14-period daily RSI is currently quoting at 60.46 and it is trading above its nine-day average. The daily MACD stays bullish as it is trading above its zero line and signal line.
Going ahead, the zone of 21,600-21,970 is likely to act as a crucial resistance for the index. On the downside, 20,350-20,300 will be the immediate support while, the 20-day EMA is likely to act as a major support, which is currently placed at 19,518 level.
The derivatives data suggest that among Bank Nifty Calls, the 22,000 strike price is the most active call for June 11, 2020 weekly expiry. Among Bank Nifty puts, 20,000 strike price is the most active put for June 11, 2020 weekly expiry. For June 11, 2020 weekly expiry, open interest wise put-call ratio (PCR) is at 1.1. For June monthly series, PCR is at 1.03.
For the weekly expiry of June 11, 2020, the highest call open interest is at 22,000 strike with 4,92,020 OI. On the put side, 19,000 strike has 5,28,400 open interest, which is the highest. The 23,000 call of June 11, 2020 weekly expiry today has seen a new addition of 2,42,720 open interest and on the put side, 19,000 put has seen a new addition of 3,80,440 open interest. For June 11, 2020 weekly expiry, the total call open interest is 34,50,060 and the put open interest is 37,83,980. For June monthly series, the highest call open interest is at 22,500 strikes with 2,55,680 OI, followed by 22,000 strikes with 2,52,460 OI. On the put side, the highest put open interest is at 20,000 strikes with 2,79,180 OI. The current derivative data suggest that the Max Pain is at 20,000 for the monthly expiry.