Bank Nifty and Nifty Analysis for 28th Feb, 2020 based on OI and Change in OI

Bank Nifty and Nifty got selling pressure from the first tick. Sell went on throughout the day till the short covers happened before the closing of the market. It was monthly expiry for the February series that have brought huge changes in data for the next series. We will analyse those data and will try to find out what data speaks based on Open Interest as well as the Trend Cycles.

Bank Nifty Option Front

Bank Nifty has given closing at 30187 on spot on 27th Feb 2020. On the options front, maximum Put open interest was at 30,000 followed by 29,500 levels, while maximum Call OI was at 30,500 followed by 31,100 levels. The major addition in the put has been seen at 30000 and 29500, in Call side major addition has been seen at 30500 and 30200.

 

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 30,500. 

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 11633.3 at spot on 27th Feb, 2020. On the options front, maximum Put open interest was at 11,500 followed by 11,600 levels while maximum Call OI was at 12,000 followed by 11,700 levels. Significant Call writing was seen at strike prices 11,700. Options data indicated a shift in the lower trading range from 11,500 to 11,700 level.

Nifty Option Chain

1. Highest Call at 12,000. 

2. Highest Put at 11500. 
3. Pivot Level at 11600.

Trend Cycles of Nifty and Bank Nifty

Some data are yet to update on NSE so unable to prepare the trend cycles. It will be uploaded once I get data from NSE.

Conclusion:

Call writers still has some grip on the market. If nifty sustains above pivot level then some relief can be seen otherwise the market is still in bearish sentiment.

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.