Bank Nifty and Nifty analysis based on OI and Change in OI for 12th March 2020

Bank Nifty and Nifty open with down gap but recovered it sharply. They moved in sideways direction through out the day and finally gave closing in green territory. Now, we will look into option data and trend cycles and analyze them for trading on Thursday.

Bank Nifty Option Front

Bank Nifty has given closing at 26487.8 on spot on 11^th March 2020. On the options front, maximum Put open interest was at 26,000 followed by 25,000 levels, while maximum Call OI was at 27,000 followed by 27,500 levels. Major addition in calls has been seen at 27000 and 26800 and major addition in put has been seen at 26000.

 

Open Interest Position Bank Nifty

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 25,000 and 27,000 levels.

1. Highest Call at 27,000. 

2. Highest Put at 26,000. 

3. Pivot Strike at 26,500.

Change in Open Interest Bank Nifty

Highest call acts as the highest resistance and highest put acts as the highest support for the Nifty and bank nifty. Pivot level is the level that bulls and bears don’t want to let it go easily. Tug of the war goes around the pivot level between bulls and bears generally.

Trading Range Of Nifty

Nifty has given closing at 10458.40 at spot on 11^th March, 2020. On the options front, maximum Call open interest is at 11,000 and then 11,700 levels while maximum Put open interest was at 10,000 and then 10,400 levels. Options data indicated a broad trading range between 10,000 and 11,000 levels.

Open Interest Position in Nifty

1. Highest Call at 11,000. 

2. Highest Put at 10,000. 
3. Pivot Level at 10,500.

Change in Open Interest Nifty

India Vix

India VIX spikes up 2.45% to 31.56. 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.

VIX Box Plot

Nifty and Bank Nifty Trend Cycles

 

Bank Nifty Trend Cycles

Nifty Trend Cycles

Conclusion:

The OI scattered here and there that indicates volatility will be there in market. VIX started rising again indicates the volatility may rise with bearish sentiment. Tend cycles indicates weakness in both indices.

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.