Nifty and Bank Nifty Analysis for 13th July 2020
Bank Nifty and Nifty opened on a mildly negative, but early morning trade saw Nifty recoup opening losses to trade flat near the previous close. However, the index saw a corrective move, which dragged it lower. Some recovery was seen in the second half of the session, but Nifty traded within a limited range. The headline index finally ended the session with a minor loss.
Let’s check the data and do the analysis for Bank Nifty and Nifty for 13th July 2020 based on Open Interest, Change in OI, PCR, Max pain and Trend Cycles.
Bank Nifty Option Front
Bank Nifty has given closing at 22398.45 on spot on 10th July 2020. On the options front, maximum Put open interest was at 22,000 followed by 21,500 levels, while maximum Call OI was at 23,000 followed by 24,000 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 21500 to 23000.
1. Highest Call at 23,000.
2. Highest Put at 22,000.
3. Pivot Level at 22,500.
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 10768.05 at spot on 10th July, 2020. In options front, maximum Put open interest stood at 10,000 level followed by 10,700, while maximum Call OI was at 11,000 followed by 10,800 levels.
Call addition was seen at 10,800 followed by 11,000 levels, while there was meaningful Put addition at 10,600 followed by 10,700 levels. Options data suggested a shift in trading range between 10,700 and 11,000 levels.
1. Highest Call at 11000.
2. Highest Put at 10,000.
3. Pivot Level at 10,800.
3. Pivot Level at 10,800.
India Vix
India VIX surged 0.12 per cent to 24.94 level. Volatility rose after a decline in the last five sessions, but overall lower volatility suggested a bullish stance.
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
|
22500
|
22800
|
0.80
|
Nifty
|
10750
|
10800
|
1.46
|
Remarks
| |||
Trend Cycles (EOD)
 |
| Bank Nifty Trend Cycles |
 |
| Nifty Trend Cycles |
Conclusion
The trend cycles on both the indices are showing short cycles. Support shifted down as well as the max pain also shifted down, indicates bearish sign. Sentiment seems to be range-bound to little bearish.
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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