Bank Nifty set to test 22,500 weekly resistance

Bank Nifty looks set to test the 22,500 resistance after bouncing from the 22,000 support this morning. Open interest rose by 17% for August delivery as the index recouped its losses to trade flat at 22,300.

Much volume-based buying happened at 22,181 level intraday. On the options front, the weekly 22,500 out of the money call witnessed intraday OI jump of 51% as the price of the option recovered from a low of Rs 36 to trade at Rs 95 (25 shares make one contract).

VWAP buying was witnessed at Rs 71 for the option. A break above 22,500 could help the index move toward the 23,000 level.