Bank Nifty and Nifty analysis based on Open Interest for 14th Feb 2020

Nifty and Bank Nifty Opened in a positive zone however got huge sell-off from the first tick. And finally consolidated in a narrow range. Today was weekly expiry for Bank Nifty and Nifty that went for the option sellers. 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 31230.25 on spot on 13th 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 31,600 levels. The major addition in the put has been seen at 31000 and in Call side addition has been seen at 31500.

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.

Trading Range Of Nifty

The Last closing of Nifty is at 12174.65 on spot. On the options front, maximum Put open interest stood at 12,100 followed by 12,000 strikes, while maximum Call OI was at 12,200, followed by 12,400 strike. Put writing was mainly seen at 12,100 and 12,000 strike. Option data indicates a narrow trading range between 12,100 and 12,200 levels.

Nifty Option Chain

1. Highest Call at 12,200. 

2. Highest Put at 12100. 

3. Pivot Level at 12150.

Trend Cycles of Nifty and Bank Nifty

Bank Nifty Trend Cycles

Nifty Trend Cycles

Conclusion:

Nifty and Bank Nifty are looking into a tight range. It would be a right time for the Option Sellers. Indices needs a breakout for start trending again. Overall picture is ranging.

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

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.