Embracing New Heights: Bank Nifty and Nifty Reach All-Time Highs

In a stunning display of market momentum, the Nifty and Nifty Bank indices opened on a positive note, swiftly breaching crucial levels and soaring to new heights. The bullish momentum persisted throughout the trading session, culminating in a remarkable closing at the pinnacle of all-time highs.


In the ever-evolving world of finance, keeping a close eye on option chain data can provide valuable insights into market trends and potential trading opportunities. Today, we embark on an analysis of Bank Nifty and Nifty for July 3, 2023, exploring key metrics such as Open Interest, Change in OI, PCR (Put-Call Ratio), Max Pain, and Trend Cycles. By delving into these factors, we aim to uncover crucial information that can empower traders and investors to make informed decisions and navigate the dynamic market landscape.

Bank Nifty Option Front

On the 30th of June 2023, Bank Nifty closed at 44,747.35 in the spot market. Looking at the options market, the highest open interest for Put options was observed at 44,500, followed by 44,000. For Call options, the maximum open interest was at 44,500, with 45,000 being the next significant level. The range of 44,000 to 45,000 strikes has shown strong open interest. Additionally, a notable presence of option writers has been observed around the at-the-money (ATM) strike.

Trading Range Of Bank Nifty

Let's determine the trading range for Bank Nifty. The trading range is typically defined as the range between the highest call strike and the highest put strike. To find this range, we should locate the rows with the highest call open interest (OI) and highest put OI in the Bank Nifty option chain. Based on the available information, it appears that the trading range is around 44,000 to 45,000.

1. Highest Call at 44,500.
2. Highest Put at 44,500.
3. Pivot Level at 44,500.

The highest call level serves as a strong resistance, while the highest put level functions as a robust support for both Nifty and Bank Nifty. The pivot level represents a critical point that both bulls and bears are reluctant to relinquish easily. Typically, a tug of war ensues between the bulls and bears around this pivotal level.

Nifty Option Front

Nifty has given closing at 19,189.05 at spot on 30th June, 2023. In options front, maximum Put open interest stood at 19,000 level followed by 19,100, while maximum Call OI was at 19,500 followed by 19,200 levels.




Call addition was seen at 19,200 followed by 19,400 levels, while there was meaningful Put addition at 19,100 followed by 19,000 levels. Options data suggested a shift in trading range between 19,000 and 19,500 levels.

1. Highest Call at 19500.
2. Highest Put at 19000.
3. Pivot Level at 19200.

OI Build Ups

Conclusion

The option chain data for both indices indicate a significant momentum in the market. As long as these indices continue to honor their respective pivot levels, we can anticipate a positive upward movement.


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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