Nifty and Bank Nifty Analysis based on Open Interest for trading on 31st Jan 2020

Today Both indices got the major  selling off from the opening on the account of  future and option contracts of January expiry. However, Nifty and bank nifty manage to defend their major support of 12000 and 30500 respectively.

Now time to analyze Open Interest, Change in Open Interest and Trend cycles for the next day trading of 31st Jan, 2020. This analysis can be used for the swing trading in Bank Nifty and Nifty As well.

Unlike last trading session bank nifty broke the range in down side. The index needs to hold above 30,500 level to witness a bounce towards 31,000 and then 31,500 levels. On the flip side, a sustainable move below 30,500 level may drag the banking index towards its next support at 30,300 and then 30,000 levels.

On the options front, maximum Put open interest was at 30,500 followed by 30,000 levels, while maximum Call OI was at 31,500 followed by 31,000 level. 

There was highest change in Open Interest at 31,500 followed by 31,000 levels in Call side while in put side was seen at 30,000 followed by 30,500 level. 

The closing of Bank Nifty as on 30th Jan 2020 is 30647 on spot level. Now time to find out the trading range of the bank nifty. For this purpose we need to look for the highest call OI Row and Highest Put OI Row on the option chain of the Bank Nifty. Options data indicated a trading range between 30,500 and 31,500 levels.

Bank Nifty Option Chain

1. Highest Call at 31500. 

2. Highest Put at 30500. 

1. Pivot Strike at 31000. 

Highest call acts as the highest resistance and highest put will act as the highest support for the Nifty and bank nifty.

The closing of Nifty as on 30th Jan 2020 is 12035.8 on spot level. Now time to find out the trading range of the nifty. For this purpose we need to look for the highest call OI Row and Highest Put OI Row on the option chain of the Nifty.

On the options front, maximum Put open interest was at 12,000 followed by 11,900 levels, while maximum Call OI was at 11,900 followed by 12,000 level. There was highest change in Open Interest at 12,200 followed by 12,100 level in put while in Call side was seen at 12,200 followed by 12,100 level. 

Nifty Option Chain

1. Highest Call at 12,300. 

2. Highest Put at 12000. 

Trend Cycles of Bank Nifty and Nifty

Bnf-Trend-Cycles

Nifty Trend Cycles

Disclaimer : The analysis is for educational purpose only. Please do your own analysis or ask your financial adviser for the same.