Bank Nifty and Nifty Analysis based on OI and Change in OI for 2nd March 2020

Our equity market faced the pressure of global sell-off on the last trading day, as it open with a gap and ended in a deep red. Nifty tried to recover but every rise was used to sell more. Though our market has pressed the panic button still 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 29147.15 on spot on 28th Feb 2020. On the options front, maximum Put open interest was at 29,000 followed by 28,500 levels, while maximum Call OI was at 30,500 followed by 30,000 levels. The major addition in the put has been seen at 28000 and 28500, in Call side major addition has been seen at 29500 and 30000.

 

Bank Nifty Last Day Change in OI

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 28,500 and 30,000 levels.

1. Highest Call at 30,500. 

2. Highest Put at 29,000. 

3. Pivot Strike at 29,500.

 

Bank Nifty Open Interest

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 11201.75 at spot on 28th Feb, 2020. On the options front, maximum Put open interest was at 11,000 followed by 10,500 levels while maximum Call OI was at 11,500 followed by 11,600 levels. Significant Call writing was seen at strike prices 11,500 and 11400. Options data indicated a shift in the lower trading range from 11,000 to 11,500 level.

Nifty last day Change in OI

1. Highest Call at 11,500. 

2. Highest Put at 11000. 
3. Pivot Level at 11300.

Nifty Open Interest

India Vix

The volatility index, India VIX, which spiked 30.79 per cent to 23.24 on Friday, is likely cool off as well. Current level of VIX is well above the maximum. You can check it on Box Plot. Maximum is around 20 and we are at 23.24. If you wonder what Box Plot is and how it works, you can check here details.

India VIX Box Plot

Conclusion:

Though option chain is showing negative data however put and calls at pivot levels also indicate some bounce back. Overall it is going to be a volatile day.

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.