Bank Nifty and Nifty Analysis based on Open Interest for 5th Feb 2020

Nifty and Bank Nifty open with an upside gap and continued the bull run throughout the day.

Now we are going to analyse Bank Nifty and Nifty for finding out what market has kept for tomorrow. We will analyse this on the basis of open interest and Change in Open Interest. Also, we will check the Trend Cycles for both Nifty and Bank Nifty.

Bank Nifty Option Front:

Bank Nifty has given closing at 30,686.7 on spot on 4th Feb 2020. On the options front, maximum Put open interest was at 30,000 followed by 30,500 levels, while maximum Call OI was at 31,000 followed by 32,000 levels.

the Major unwinding in the call at 30,500 and major addition of call at 30400 have been seen.

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 30,000 and 31,000 levels.

 

Bank Nifty Option Chain

1. Highest Call at 31,000. 

2. Highest Put at 30,000. 

1. Pivot Strike at 30,500. 

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 30th Jan 2020 is 11979.65 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.

On the options front, maximum Put open interest was at 11,800 followed by 11,500 levels, while maximum Call OI was at 12,200 followed by 12,000 level.

Major call unwinding has been seen at 12000 and 12200. Put has been added in very good quantity at 11,900, 11850 and 11800. These all indicates the bull run may continue.

Nifty Option Chain

Trading Range of Nifty:

1. Highest Call at 12,200. 

2. Highest Put at 11800. 

Trend Cycles of Nifty and Bank Nifty

Bank Nifty Trend Cycles

Nifty Trend Cycles

Conclusion:

On Option front, Bank nifty and Nifty seems bullish however on Trend Cycles we are seeing short and short cover. This indicates we cannot be heavy bullish on Indices as long as we get confirmation from trend cycles. 

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