Nifty and Bank Nifty continued the bull run today as well and gave a close in green territory. It witnessed the effect of the RBI Monetarily policy that comes at 11:45 AM.
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 31304.05 on spot on 6th Feb 2020. On the options front, maximum Put open interest was at 31,000 followed by 30,500 levels, while maximum Call OI was at 31,500 followed by 32,000 levels. The major addition in the put has been seen at 31000 and in Call side addition has been seen at 31500.
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| 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 31,500 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 6th Jan 2020 is 12137.95 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.
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| Nifty Option Chain |
Maximum Put open interest stood at 12,000 followed by 12,100 levels, while maximum Call OI was at 12,200 followed by 12,100 levels. There was Put writing at 12,100 and then 12,000 levels, while Call writing was seen at 12,200 followed by 12,100 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
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| Bank Nifty Trend Cycles |
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| Nifty Trend Cycles |
Conclusion:
On Option front, Bank nifty and Nifty seems bullish but upside seems to be capped as we have good resistance at the higher strikes and good support at the lower strikes. Trend Cycles are in long long cycles - this also indicates the bullish note of the market. However, You need to be careful at higher levels as it may witness some profit booking.
Disclaimer: The analysis is for educational purpose only. Please do your own analysis or ask your financial adviser for the same.
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