Nifty and Bank Nifty Analysis for 29th May 2020
Bank Nifty and Nifty continued its rally on Thursday as well and some fresh buying lead and kept both the indices in Green zone for the May expiry. Nifty rallied for 175 points. Bank Nifty rallied sharply in the first half of the session. But we witnessed some profit booking at higher levels. However, the banking index remained in the positive territory and continued its outperformance against the benchmark index for the third consecutive session.
Let’s check the data and do the analysis for Bank Nifty and Nifty for 28th May 2020 based on Open Interest, Change in OI, PCR, Max pain and Trend Cycles.
Bank Nifty Option Front
Bank Nifty has given closing at 19169.80 on spot on 28th May 2020. On the options front, maximum Put open interest was at 19,000 followed by 18500 levels, while maximum Call OI was at 19,500 followed by 20,000 levels. The OI positions are scattered at various strike rates, indicates the volatility can remain in the market. A good call addition and put addition has been seen around the ATM strike.
Trading Range Of Bank Nifty
Now time to find out the trading range of the bank nifty. Trading Range is a general range between the highest call strike and highest put strike. To find the range, we need to look for the highest call OI Row and Highest Put OI Row on the option chain of the Bank Nifty. Trading range seems to be 18500 to 20000.
1. Highest Call at 19,500.
2. Highest Put at 19,000.
3. Pivot Level at 19,000.
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 9490.10 at spot on 28th May, 2020. The maximum Call open interest stood at 9,500 and then 9,600 levels while maximum Put OI was at 9,000 and then 9,200 levels. Significant Put writing was seen at 9,400 followed by 9,200 levels, whereas there was a good Call writing at 9,500 followed by 10,000 levels. Options data indicated an immediate trading range between 9,400 and 9,600 levels.
1. Highest Call at 9500.
2. Highest Put at 9,000.
3. Pivot Level at 9400.
3. Pivot Level at 9400.
India Vix
India VIX declined by 4.01% to 30 level. Volatility has been falling since the last seven sessions, which is supporting the benchmark indices. 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.
Derivative Data
Symbol
|
Max Pain
|
Pre. Max Pain
|
PCR (OI)
|
Bank Nifty
|
19000
|
18400
|
-
|
Nifty
|
9400
|
9250
|
-
|
Remarks
|
Trend Cycles (EOD)
 |
| Bank Nifty Trend Cycles |
 |
| Nifty Trend Cycles |
Conclusion
The Pivot level in Bank Nifty and Nifty shifted up, indicates some positivity in it. The Max Pain for both the indices also shifted higher. On the data front, Put writers look stronger. Trend Cycles show clear fresh buying in Nifty whereas Bank Nifty witnessed Short Cover.
From the last three days, Nifty is showing long-long cycles whereas Bank Nifty is showing no sign of strength yet. It still has short-cover cycles.
Open Interest Images are generated by the Telegram Bot: OIinAction. You can also join it and can generate OI images for free.
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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