Bank Nifty and Nifty Analysis - 3rd Feb 2020

Last day was a special trading day as we were open on Saturday. It was Union Budget day for us. Traders were enthusiastic about the budget but it lacked boosting measures that market needed that landed Nifty and Bank Nifty deep in the red at the end of the day.

Now we are going to analyse Bank Nifty and Nifty for finding out what market has kept for tomorrow. We will analyse this on the basis of open interest and Change in Open Interest. Also, we will check the Trend Cycles for both Nifty and Bank Nifty.

Let us start with Bank Nifty.

Bank Nifty has given closing at 29820.90 on spot on 1st Feb 2020. On the options front, maximum Put open interest was at 29,000 followed by 30,000 levels, while maximum Call OI was at 31,000 followed by 30,500 levels 

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

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 29,000 and 30,500 levels.

Bank Nifty Option Chain

Bank Nifty has given closing at 29820.90 on spot on 1st Feb 2020. On the options front, maximum Put open interest was at 29,000 followed by 30,000 levels, while maximum Call OI was at 31,000 followed by 30,500 levels 

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

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 29,000 and 30,500 levels.

1. Highest Call at 31000. 

2. Highest Put at 29000. 

1. Pivot Strike at 30,000. 

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 11661.85 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 11,500 followed by 11,800 levels, while maximum Call OI was at 12,200 followed by 12,000 level.

Nifty Option Chain

1. Highest Call at 12,200. 

2. Highest Put at 11500. 

Trend Cycles of Bank Nifty and Nifty:

Nifty Trend Cycles

Bank Nifty Trend Cycles

Conclusion:

Overall the OI and Change in OI in Bank Nifty and Nifty are scattered at different strike prices. That indicates both indices will remain volatile for the upcoming days. On Trend Cycles Bank Nifty and Nifty have witnessed aggressive selling so we can expect some short covers from lower levels.

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