Daily Nifty and Bank Nifty analysis for 27th March 2020
Nifty in three straight sessions plotted the green candle. Bank Nifty and Nifty opened green and got fresh long from the lower levels that took and manage Nifty to close above 8500. The falling VIX helps the rally. And also it was march expiry that made volatility around. Now, we will analyse OI, Change in OI, VIX and Trend Cycles for 27th March 2020.
Bank Nifty Option Front
Bank Nifty has given closing at 19613.9 on spot on 26th March 2020. On the options front, maximum Put open interest was at 15,000 followed by 18,000 levels, while maximum Call OI was at 22,000 followed by 20,000 levels.
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. Trading seems to be 18000 to 21000.
1. Highest Call at 22,000.
2. Highest Put at 15,000.
3. Pivot Level at 19,500.
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 8641.45 at spot on 26th March, 2020. On the options front, maximum Call OI was at 9,000 and then 9500 levels while maximum Put OI was at 8,000 and then 8,500 levels.
Options OI data lay scattered at various strike prices, indicate the volatility.
1. Highest Call at 9000.
2. Highest Put at 8,600.
3. Pivot Level at 8500.
3. Pivot Level at 8500.
India Vix
India VIX closed at 71.53 level with 7.85% fall. A higher VIX beyond 70 level suggested that volatile swings could continue in the market. Volatility has to cool down from current multi-year-high levels and only then the Indian market could see stability and have a smooth ride. However, Volatility has been started cooling from higher levels.
It 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.
Nifty and Bank Nifty Trend Cycles
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| Bank Nifty trend Cycles |
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| Nifty Trend Cycles |
Conclusion:
The OI scattered here and there that indicates volatility will be there in the market. Some cooling has been seen today in VIX, if VIX continues to cool down, it will help the market to form a bottom. On Trend cycles, some positive cycles are started appearing, this is also an indication of good sign to market recover. However, volatility is still high 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.
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