Bank Nifty and Nifty Analysis based on Open Interest for 11th Feb 2020

It was sellers day. Nifty witness huge sell-off from 12100 level on 10th Feb 2020. Bank nifty also got some selling however it takes its support around 31000. 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 31058.15 on spot on 10th 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 31,500 followed by 32,000 levels. The major addition in the put has been seen at 30600 and in Call side addition has been seen at 31400.

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 31,500. 

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 10th Jan 2020 is 12031.50 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 12,100 followed by 12,200 levels. There was Put writing at 12000 and then 11,950 levels, while Call writing was seen at 12,100 followed by 12,150 levels. Unwinding has been seen at 12100 put side. Options data indicated a narrow trading range between 12,000 and 12,100 levels.

1. Highest Call at 12,100. 

2. Highest Put at 12000. 

3. Pivot Level at 12000.

Trend Cycles of Nifty and Bank Nifty

Bank Nifty Trend Cycles

Nifty Trend Cycles

Conclusion:

Nifty and Bank Nifty have given closing its pivot levels 12000 and 31000 respectively. The trading range of both indices is narrow now. The resistance and support have been sifted down. This indicates bearishness in both indices with a narrow trading range. 

In the trend cycle, Bank Nifty have witnessed long unwinding and Nifty saw short. This also indicates bearishness. However, you have to keep eyes on their pivot levels.

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