Bank Nifty and Nifty Analysis based on OI and Change in OI for 27th Feb 2020

Bank Nifty and Nifty open with a gap down and faced huge sell-off throughout the day. However, some recovery has been noticed in the latter half of the day. Now we will check what it has kept secret for tomorrow with the help of Open Interest Data and Trend Cycles.

Bank Nifty Option Front

Bank Nifty has given closing at 30306.85 on spot on 26th Feb 2020. On the options front, maximum Put open interest was at 30,000 followed by 30,200 levels, while maximum Call OI was at 31,000 followed by 30,500 levels. Meaningful unwinding in the put has been seen at 30500 and 30400, in Call side major addition has been seen at 30400 and 30300.

 

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 30,000 and 30,500 levels.

1. Highest Call at 31,000. 

2. Highest Put at 30,000. 

3. Pivot Strike at 31,300.

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

Nifty has given closing at 11678.5 at spot on 26th Feb, 2020. On the options front, maximum Put open interest was at 11,700 followed by 11,500 levels while maximum Call OI was at 12,000 followed by 11,900 levels. Significant Call writing was seen at strike prices 11,700 to 11,800 and there was meaningful Put unwinding at most of the immediate strike prices. Options data indicated a shift in the lower trading range from 11,600 to 11,800 level.

Nifty Option Chain

1. Highest Call at 12,000. 

2. Highest Put at 11700. 
3. Pivot Level at 11700.

Trend Cycles of Nifty and Bank Nifty

Bank Nifty Trend Cycles

Nifty Trend Cycles

Conclusion:

Meaningful unwinding at put sides and major addition at call sides indicates the bearishness of the market. Also, We have noticed that the pivot level has been shifted down that also indicates weakness in the market.

Trend cycles of Nifty and Bank Nifty also indicates the bears' grip on the market.

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.