Bank Nifty and Nifty analysis based on OI and Change in OI for 3rd March 2020

Bank Nifty and Nifty open up with a gap and consolidate into the positive territory in the first half of the session. But in the second half, the bear started taking the market into their grip and that makes nifty to nosedive around 380 points from the higher levels, finally settled just below 11150. Bank Nifty also lost its entire gain and end into the red. 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 28868.4 on spot on 2nd 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 29,500 levels. The major addition in the put has been seen at 28100 and 28500, in Call side major addition has been seen at 29000.

 

Open Interest Positions of 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 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 11132.75 at spot on 2nd March, 2020. On the options front, maximum Put open interest was at 11,000 followed by 10,500 levels while maximum Call OI was at 12,000 followed by 11,500 levels. Significant Call writing was seen at strike prices 11,300 and 11400. Options data indicated a shift in the lower trading range from 10,500 to 11,500 level.

OI positions of Nifty

1. Highest Call at 12,000. 

2. Highest Put at 11000. 
3. Pivot Level at 11200.

India Vix

India VIX moved up sharply by 8.44 per cent to 25.20 level. 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

Trend Cycles of Nifty and Bank Nifty

Bank Nifty Trend Cycles

Nifty Trend Cycles

Conclusion:

Option data show there is a bearish sentiment in the market. High VIX indicates we may have a volatile session. The pivot levels in both indices have shifted down that indicates bearish sentiment as well.

On-trend cycles, we have long unwind and short cover cycles on both Nifty and Bank Nifty which is also showing weakness in the market. Overall vie seems to be negative with highly volatile trading sessions.

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.