Bank Nifty and Nifty Analysis based on Open Interest and Change in Open Interest for 19th Feb 2020

Markets starts with selling. Nifty and Bank Nifty went below their pivot levels 12000 and 30500 respectively however recovered later and gave closing around the pivot levels. 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 30562.5 on spot on 18th Feb 2020. On the options front, maximum Put open interest was at 30,000 followed by 30,300 levels, while maximum Call OI was at 31,500 followed by 31,000 levels. The major addition in the put has been seen at 30300 and in Call side addition has been seen at 30700.

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 31,000 levels.

1. Highest Call at 31,500. 

2. Highest Put at 30,000. 

3. 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.

Trading Range Of Nifty

The Last closing of Nifty is at 11992.5 on spot. On the options front, maximum Put open interest stood at 11,900 followed by 11,800 strikes, while maximum Call OI was at 12,200, followed by 12,100 strike. Put writing was mainly seen at 11,900 and 11,800 strike. Option data indicates a trading range between 11,900 and 12,100 levels.

Nifty Option Chain

1. Highest Call at 12,200. 

2. Highest Put at 11900. 
3. Pivot Level at 12000.

Trend Cycles of Nifty and Bank Nifty

Bank Nifty Trend Cycles

Nifty Trend Cycles

Conclusion:

Today, call writing as well as put writing has been seen. This indicates range bound of the indices. Both indices are near pivot points. We need to keep eyes on those pivot level. Overall option data is little bearish. 

In the trend cycle, Bank Nifty has witnessed long unwinding cycles however nifty also has short-long unwinding cycles from the last two days. This is an indication of mild bearishness of 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.