Bank Nifty and Nifty analysis based on OI and Change in OI for 4th March 2020

After seven consecutive sessions of losing streak, Bank Nifty and Nifty negated the bearish momentum and with help of short-covering managed to close in the green zone. We will analyse 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 29177.05 on spot on 3^rd March 2020. On the options front, maximum Put open interest was at 28,500 followed by 28,000 levels, while maximum Call OI was at 30,000 followed by 30,500 levels. The major addition in the put has been seen at 29000 and 28500, in Call side major addition has been seen at 29200.

 

Bank Nifty Open Interest Position

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 29,500 levels.

1. Highest Call at 30,000. 

2. Highest Put at 28,500. 

3. Pivot Strike at 29,000.

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 11303.3 at spot on 3^rd March, 2020. On the options front, maximum Call open interest is at 11,600 and then 11,800 levels while maximum Put open interest was at 11,000 and then 11,200 levels. Options data indicated a broad trading range between 10,800 and 11,600 levels.

Nifty Open Interest Position

1. Highest Call at 11,600. 

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

India Vix

India VIX felled 2.61% to 24.64. Still, India VIX is sustaining above the maximum on Box Plot into outlier data on the daily scale and thus volatile swings may continue in the coming days. If you wonder what Box Plot is and how it works, you can check here details.

Box Plot for VIX

Trend Cycles of Nifty and Bank Nifty

 

Bank Nifty Trend Cycles

Nifty Trend Cycles

Conclusion:

VIX is very high. That indicates the volatile market with mixed data on Option chain. On-trend cycles, today we have long build-up however cycles are still showing weakness in 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.