Bank Nifty and Nifty analysis based on OI and Change in OI for 6th March, 2020

It was a weekly expiry of the Nifty and Bank Nifty, so volatility was expected that we saw today in the market. Market opens green and given good rally in the first half of the session but it lost almost entire gains and Nifty closed almost flat. Now, we will look into option data and trend cycles and analyze them for trading tomorrow.

Bank Nifty Option Front
Bank Nifty has given closing at 28815..35. on spot on 5th March 2020. On the options front, maximum Put open interest was at 28,000 followed by 27,500 levels, while maximum Call OI was at 30,000 followed by 29,000 levels. The major addition in calls has been seen at 29000 and 29500 and major addition in the put has been seen at 28,500, 28,000 and 27,500.

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 28,000 and 29,500 levels.

1. Highest Call at 30,000. 
2. Highest Put at 28,000. 
3. Pivot Strike at 29,000.
Highest call acts as the highest resistance and highest put acts as the highest support for the Nifty and bank nifty. Pivot level is the level that bulls and bears don’t want to let it go easily. Tug of the war goes around the pivot level between bulls and bears generally.

Trading Range Of Nifty
Nifty has given closing at 12269.0 at spot on 5th March, 2020. On the options front, maximum Call open interest is at 11,400 and then 11,900 levels while maximum Put open interest was at 11,000 and then 10,800 levels. Major unwinding has been seen at 11300 put. Options data indicated a broad trading range between 11,000 and 11,400 levels.

1. Highest Call at 11,400. 
2. Highest Put at 11000. 
3. Pivot Level at 11300.

India Vix
India VIX felled 4.04% to 23.25. Still, India VIX is sustaining above the maximum on Box Plot into outlier data on the daily scale and thus volatile swings may continue in the coming days. If you wonder what Box Plot is and how it works, you can check here details.
VIX Box Plot


The OI scattered here and there that indicates volatility will be there in the market. VIX is cooling slowly, it means writers may drive the market both ways.
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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