Bank Nifty and Nifty Analysis based on OI and Change in OI for 25th Feb 2020

Today Bank nifty and Nifty opens with a gap down and with the first tick got huge sell-off. 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 30455.1 on spot on 24th Feb 2020. On the options front, maximum Put open interest was at 30,000 followed by 30,500 levels, while maximum Call OI was at 31,000 followed by 31,500 levels. The major addition in the put has been seen at 30200 and 30300, in Call side major addition has been seen at 30700, 30600 and 30500.

 

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 31,000. 

2. Highest Put at 30,000. 

3. Pivot Strike at 31,500.

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

 Nifty has given closing at 11829.4 at spot on 24th Feb, 2020. On the options front, maximum Put open interest was at 11,800 followed by 11,700 strike while maximum Call OI stood at 12,000 followed by 12,150 strikes. We have seen meaningful Put Writing at 11,700 followed by 11,800 strike while Call addition was seen at all the immediate strikes. Option data indicates the trading range between 11,700 and 12,000 levels.

Nifty Option Chain

1. Highest Call at 12,000. 

2. Highest Put at 11800. 
3. Pivot Level at 11800.

Trend Cycles of Nifty and Bank Nifty

Bank Nifty Trend Cycles

Nifty Trend Cycles

Conclusion:

The market has created a bigger trading range so we may have a volatile day.

In the trend cycle, Bank Nifty has witnessed long-short cycles however nifty has short-short cycles from 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.