Nifty and Bank Nifty Analysis for 22nd June 2020
Despite the little correction in the indices, Bank Nifty and Nifty kept on moving higher on Friday. Index traded in a capped range in first hour of the trade but bulls took it to higher levels in the later hours.
Let’s check the data and do the analysis for Bank Nifty and Nifty for 22nd 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 21338.10 on spot on 19th 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 23,000 levels. The OI positions are scattered at various strike rates, indicates the volatility can remain in the market. A good call 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 19000 to 22000.
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 10244.40 at spot on 19th June, 2020. The maximum Call open interest stood at 10,500 and then 11,000 levels while maximum Put OI was at 9,500 and then 10,000 levels. Significant call writing was seen at 10,400 followed by 10,500 levels, whereas a good addition of the put has been seen at 10200. Options data indicated an immediate trading range between 10000 and 10,500 levels.
1. Highest Call at 10500.
2. Highest Put at 9,500.
3. Pivot Level at 10,200.
3. Pivot Level at 10,200.
India Vix
Volatility continued to cool off on Friday and volatility index INDIA VIX declined 4.74 per cent to 29.9650. 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
|
20200
|
1.07
|
Nifty
|
10000
|
9900
|
1.56
|
Remarks
| |||
Trend Cycles (EOD)
 |
| Bank Nifty Trend Cycles |
 |
| Nifty Trend Cycles |
Conclusion
Put writers and call writers look equally strong on open interest. So, we can see a tough fight between them and that may result in volatile swings in the market. Max Pain level has increased a little shows the bullish undertone of the market.
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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