Bank Nifty and Nifty Analysis for Budget day

We witnessed as volatile movement in the market today. Nifty failed to hold 12100 level and sharply declined towards 11950 and finally closed below 12000.

As long as it remains below the 12,000 mark, Nifty could accelerate its weakness towards 11,950 and then 11,11,900 levels, while on the upside hurdles are seen at 12,100 and then 12,200 levels.

Now time to analyze Open Interest, Change in Open Interest and Trend cycles for the next day trading of 31st Jan, 2020. This analysis can be used for the swing trading in Bank Nifty and Nifty As well.

Options data was scattered at various strike prices. Maximum Put open interest was at 12,000 followed by 11,500 levels, while maximum Call OI was at 12,500 followed by 12,200 mark. There was Call writing at 12,000 and then 12,500 levels while Put writing was seen at 12,000 and 11,500 levels. Options data indicated a wider swing in the market ahead of the Budget.

Bank Nifty opened positive and relatively outperformed the benchmark index, as buying emerged on select banking counters. The index has been consolidating in a wider trading range between 30,600 and 31,400 levels since the last nine sessions, as dips got bought into while supply pressure emerged at higher levels.

On the options front, maximum Put open interest was at 30,000 followed by 30,500 levels, while maximum Call OI was at 32,000 followed by 32,000 levels. 

The closing of Bank Nifty as on 31st Jan 2020 is 30833.60 on spot level. Now time to find out the trading range of the bank nifty. For this purpose, we need to look for the highest call OI Row and Highest Put OI Row on the option chain of the Bank Nifty.

1. Highest Call at 32000. 

2. Highest Put at 30000.