Nifty and Bank Nifty Analysis for 10th June 2020
Nifty and Bank Nifty started on a flat note however, it tried to attend the higher levels in the first half but failed to hold the higher level and got huge sell-off that made market nosedive in the latter half.
Let’s check the data and do the analysis for Bank Nifty and Nifty for 10th June 2020 based on Open Interest, Change in OI, PCR, Max pain and Trend Cycles.
Bank Nifty Option Front
Bank Nifty has given closing at 20724.90 on spot on 9th June 2020. On the options front, maximum Put open interest was at 20,000 followed by 19,000 levels, while maximum Call OI was at 22,000 followed by 22,500 levels. The OI positions are scattered at various strike rates, indicates the volatility can remain in the market. A good 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 19500 to 21500.
1. Highest Call at 22,000.
2. Highest Put at 20,000.
3. Pivot Level at 21,000.
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 10046.65 at spot on 9th June, 2020. The maximum Call open interest stood at 10,500 and then 10,400 levels while maximum Put OI was at 9,800 and then 10,000 levels. Significant call writing was seen at 10,100 followed by 10,200 levels, whereas a good unwinding of the put has been seen at 10000. Options data indicated an immediate trading range between 9,800 and 10,200 levels.
1. Highest Call at 10500.
2. Highest Put at 9,800.
3. Pivot Level at 10,000.
3. Pivot Level at 10,000.
India Vix
India VIX moved up 1.89 per cent to 30.20 level. Volatility increased slightly after the index declined for four consecutive weeks but the overall lower volatility is forming a higher market base. 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
|
Pre. Max Pain
|
PCR (OI)
| |
Bank Nifty
|
21000
|
21000
|
0.77
|
Nifty
|
10100
|
10100
|
1.2
|
Remarks
|
Trend Cycles (EOD)
 |
| Bank Nifty Trend Cycles |
 |
| Nifty Trend Cycles |
Conclusion
The pivot level in Nifty has been shifted down and the Call writers look in the driving sheet. Nifty is showing long-long unwinding cycles whereas bank nifty shows short- long cycles. Both the indices are showing long and long cycles this pair of cycles are generally bullish. Market looks range-bound with little negative sentiment.
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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