Trading Range Of Bank Nifty


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 31,000 and 31,500 levels.




1. Highest Call at 31,500. 


2. Highest Put at 31,000. 


3. Pivot Strike at 31,000.


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

Nifty Option Front:
The closing of Nifty as on 6th Jan 2020 is 12137.95 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.
Nifty Option Chain
Maximum Put open interest stood at 12,000 followed by 12,100 levels, while maximum Call OI was at 12,200 followed by 12,100 levels. There was Put writing at 12,100 and then 12,000 levels, while Call writing was seen at 12,200 followed by 12,100 levels. Options data indicated a narrow trading range between 12,000 and 12,200 levels.


1. Highest Call at 12,200. 


2. Highest Put at 12000. 

3. Pivot Level at 12100.


Trend Cycles of Nifty and Bank Nifty
Bank Nifty Trend Cycles
Nifty Trend Cycles
Conclusion:



On Option front, Bank nifty and Nifty seems bullish but upside seems to be capped as we have good resistance at the higher strikes and good support at the lower strikes. Trend Cycles are in long long cycles - this also indicates the bullish note of the market. However, You need to be careful at higher levels as it may witness some profit booking.

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