Bank Nifty and Nifty Analysis based on OI for 10th Feb 2020

It was packed in a small range day for both Bank Nifty and Nifty on 7th Feb 2020. How do they perform in tomorrow session? We will try to find out by analyzing the open interest, change in open interest and Trend Cycles.

Bank Nifty Option Front:

Bank Nifty has given closing at 31201.95 on spot on 7th Feb 2020. On the options front, maximum Put open interest was at 31,000 followed by 30,000 levels, while maximum Call OI was at 32,000 followed by 31,500 levels. The major addition in the put has been seen at 30000 and in Call side addition has been seen at 32000.

Bank Nifty Option Chain

Trading Range Of Bank Nifty

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. Options data indicated a trading range between 30,500 and 31,500 levels.

1. Highest Call at 32,000. 

2. Highest Put at 31,000. 

3. Pivot Strike at 31,000.

Highest call acts as the highest resistance and highest put will act as the highest support for the Nifty and bank nifty.

Nifty Option Front:

The closing of Nifty as on 7th Jan 2020 is 12098.35 on spot level. Now time to find out the trading range of the 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 Nifty.

Nifty Option Chain

Trading Range Of Nifty

Maximum Put open interest stood at 12,000 followed by 11,800 levels, while maximum Call OI was at 12,200 followed by 12,100 levels. There was Put writing at 11,900 and then 11,800 levels, while Call writing was seen at 12,200 followed by 12,150 levels. Options data indicated a narrow trading range between 12,000 and 12,200 levels.

1. Highest Call at 12,200. 

2. Highest Put at 12000. 

3. Pivot Level at 12100.

Trend Cycles of Nifty and Bank Nifty

Bank Nifty Trend Cycles

Nifty Trend Cycles

Conclusion:

Nifty and Bank Nifty both are near its pivot level. Above that level, they are little bullish below that level mild bearish. The upside seems capped on Both the indices. On-trend cycles Long-long and short cycles have been created. Overall picture is confusing with packed range.

Disclaimer: The analysis is for educational purpose only. Please do your own analysis or ask your financial adviser for the same.