Bank Nifty and Nifty Analysis based on OI for 13th Feb 2020

Nifty and Bank Nifty Opened with gap up. Most of the time Nifty consolidated around 12200 and bank Nifty consolidated around 31500. 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 31492.9 on spot on 12th Feb 2020. On the options front, maximum Put open interest was at 31,000 followed by 30,300 levels, while maximum Call OI was at 31,500 followed by 31,700 levels. The major addition in the put has been seen at 30500 and in Call side addition has been seen at 31900.

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 31,000 and 31,700 levels.

1. Highest Call at 31,700. 

2. Highest Put at 31,000. 

3. Pivot Strike at 31,500.

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

Trading Range of Nifty

On the options front, maximum Put open interest stood at 12,000 followed by 11,800 strike, while maximum Call OI was at 12,500, followed by 12,400 strike. Put writing was mainly seen at 12,000 and 12,200 strike, while Call unwinding was seen at all the immediate strikes. Option data indicates a wider trading range between 12,000 and 12,400 levels.

Nifty Option Chain

1. Highest Call at 12,500. 

2. Highest Put at 12000. 

3. Pivot Level at 12200.

Trend Cycles of Nifty and Bank Nifty

Bank Nifty Trend Cycles

Nifty Trend Cycles

Conclusion:

Nifty needs to maintain its 12200 for further movement. If fails to sustain this level then some profit book booking may come into play. However, Market seems to buy on dip on option data. In other hand Bank nifty needs to sustain over 31500 for further up movement. However 31700 can be a good resistance for bank nifty if it moves up.

In the trend cycle, Bank Nifty has witnessed long long cycles however nifty has short covering from last two days. Data is mixed with mild bullish.

Disclaimer: The analysis has been prepared for informational and educational purposes only. It is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.