Nifty and Bank Nifty Analysis for 30th June 2020
Nifty opened a negative note as the global cues were weak and drifted towards the 10200 in the initial trades. Nifty was in a range of 100 points most of the session, but buying interest at lower levels help nifty to close above 10,300.
Bank Nifty opened on a negative note and drifted towards the 21,000 level in the initial hour of the session. However, it remained sideways for the most part of the session and wiped out some of the losses.
Let’s check the data and do the analysis for Bank Nifty and Nifty for 30th 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 21359.0 on spot on 29th June 2020. On the options front, maximum Put open interest was at 20,500 followed by 19,500 levels, while maximum Call OI was at 23,000 followed by 22,000 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 20000 to 22500.
1. Highest Call at 23,000.
2. Highest Put at 20,500.
3. Pivot Level at 21,500.
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 10312.40 at spot on 29th June, 2020. In options front, maximum Put open interest stood at 10,100 level followed by 10,000, while maximum Call OI was at 10,500 followed by 11,000 levels. Call writing was seen at 10,300 followed by 10,400 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 11000.
2. Highest Put at 10,000.
3. Pivot Level at 10,300.
3. Pivot Level at 10,300.
India Vix
India VIX moved up marginally by 0.59 per cent to 28.91 level. However, lower volatility suggests an overall bullish stance and emergence of multiple supports on small declines. 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
|
21500
|
0.79
|
Nifty
|
10300
|
10300
|
1.3
|
Remarks
| |||
Trend Cycles (EOD)
 |
| Bank Nifty Trend Cycles |
 |
| Nifty Trend Cycles |
Conclusion
Bulls and Bears both look stronger. They both don’t want to lose their controls so Indices looks range bound. However, wild swings can be seen in the market as due to volatility.
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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