Daily Nifty and Bank Nifty Analysis based on OI and Change in Oi for 25th March 2020

Nifty open gap up today and race towards 8000 where bears got active and started selling the rise off. Due to selling at higher levels, Nifty went in red and again spikes from the low. Moreover, it was a volatile session for the Indiana markets. This volatility has been already analyzed in our previous analysis. We will do now nifty and bank nifty analysis based on Open Interest, Change in Open Interest, India Vix and Trend Cycles for 25th March 2020.

Bank Nifty Option Front
Bank Nifty has given closing at 17107.30 on spot on 24th March 2020. On the options front, maximum Put open interest was at 14,000 followed by 16,000 levels, while maximum Call OI was at 18,000 followed by 19,000 levels. Major addition in calls has been seen at 18000 strikes. Some put unwinding has been seen at 17100 strike.

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. Trading seems to be 14000 to 19000.
1. Highest Call at 18,000. 
2. Highest Put at 14,000. 
3. Pivot Level at 17,000.

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 7,801.05 at spot on 24th March, 2020. On the options front, maximum Call OI was at 9,000 and then 8500 levels while maximum Put OI was at 7,000 and then 7,500 levels. Unwinding has been seen at 8100 put.

Options OI data lay scattered at various strike prices, indicate the volatility.

1. Highest Call at 9000. 
2. Highest Put at 7,000. 
3. Pivot Level at 8000.
India Vix
India VIX closed at 83.6 level with 16.15% gain. A higher VIX beyond 70 level suggested that volatile swings could continue in the market. Volatility has to cool down from current multi-year-high levels and only then the Indian market could see stability and have a smooth ride. It 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.

Nifty and Bank Nifty Trend Cycles
It will be uploaded soon.

The OI scattered here and there that indicates volatility will be there in the market. VIX started rising again indicates the volatility may rise with bearish sentiment.
Due to high volatility, the volume in the market has become almost 1/4th of the original. This indicates no stability in the market as of now.
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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