Bank Nifty and Nifty Analysis based on OI for 6th Feb 2020

Nifty and Bank Nifty opened on the positive note and continue the bull run for 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. We will have RBI Policy and weekly expiry for Nifty and Bank nifty tomorrow.

Bank Nifty Option Front:

Bank Nifty has given closing at 31001.95 on spot on 5th Feb 2020. On the options front, maximum Put open interest was at 30,500 followed by 30,700 levels, while maximum Call OI was at 31,300 followed by 31,200 levels.

Major unwinding in a call at 31,100 and major addition of call at 30300 have been seen. A major addition in the put has been seen at 30800.

Bank Nifty Option Chain

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 30,800 and 31,300 levels.

1. Highest Call at 31,300. 

2. Highest Put at 30,500. 

1. Pivot Strike at 30,800.

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 5th Jan 2020 is 12089.15 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 11,500 levels, while maximum Call OI was at 12,500 followed by 12,400 levels. There was Put writing at 11,900 and then 11,600 levels, while Call writing was seen at 12,500 followed by 12,400 levels. Options data indicated a wider trading range between 11,800 and 12,300 levels.

1. Highest Call at 12,500. 

2. Highest Put at 12000. 

3. Pivot Level at 12000.

Trend Cycles of Nifty and Bank Nifty

Bank Nifty Trend Cycles

Nifty Trend Cycles

Conclusion:

On Option front, Bank nifty and Nifty seems bullish as the trading range shifted up. On Trend Cycles after two consecutive short cover, we have a long cycle in play. Apart from this we also have to look for the RBI Policy and Expiry tomorrow. Over All a volatile market can be seen and people can use decline as a buying opportunity. 

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