The market saw high volatility last week due to a selloff in global markets.
Nifty Bank had a new all-time high of 44,151 during the week. The week ended at 43,219. It was 80, but closed the week at 43,219. It was down 0.95 per cent, and 50 was down 0.95 per cent.
The banking index has the support of 21 DMA on the daily chart. The immediate support for the index has shifted to 42,600 -- 42,200 while the resistance is at 44,150.
Momentum indicators RSI and MACD are currently in the neutral zone.
The HDFC twins outperformed, supported by SBI, and the index has managed to claim a new high during the week.
IndusInd Bank could be a front-runner among private banks. SBI can still hold the command in the PSU banking space.
The Nifty Bank Put options distribution showed that the 42,000 strikes had the highest open interest OI concentration, which could be used as support for the current expiry.
Nifty Bank Call's 43,000 strike, followed by 44,000, witnessed significant OI concentrations and may act as resistance for the ongoing expiry.
After a sustained increase, the market may experience some consolidation, as investors would book some profits from higher levels.
The banking sector was under pressure after the MPC policies were reviewed by the Fed and RBI. There are more triggers in the private banking space next week, as OI data shows more call option writing is seen at higher strike prices.
The weekly chart shows slight bearishness for the next few days. A slight pullback is considered healthy for the long run and the primary trend is still bullish in the short term.
FIIs typically sell in December when investors start to take tax-loss harvesting to reduce capital gains, according to historical statistics.