Nifty and Bank Nifty Analysis for 23rd June 2020
Bank Nifty and Nifty opened a gap up and rallied towards the higher level. However, it failed to hold at higher levels and corrected around 100 points in the last hour of trade.
Let’s check the data and do the analysis for Bank Nifty and Nifty for 23rd 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 21738.35 on spot on 22nd June 2020. On the options front, maximum Put open interest was at 20,000 followed by 21,000 levels, while maximum Call OI was at 23,000 followed by 22,500 levels. The OI positions are scattered at various strike rates, indicates the volatility can remain in the market. A good 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 21000 to 23000.
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 10311.20 at spot on 22nd June, 2020. In monthly options, maximum Put open interest stood at 10,000 level followed by 9,500, while maximum Call OI was at 10,500 followed by 11,000 levels. Call writing was seen at 10,800 followed by 10,600 levels, while there was meaningful Put writing at 10,100 followed by 10,200 levels. Options data suggested a shift in trading range between 10,000 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
India VIX moved up 1.67 per cent from 29.96 to 30.46 and overall consolidating volatility is giving comfort to the bulls as the market base shifted higher. 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
|
21300
|
21100
|
1.13
|
Nifty
|
10100
|
10000
|
1.52
|
Remarks
| |||
Trend Cycles (EOD)
Some data are available.
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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