Daily Bank Nifty and Nifty analysis based on OI and Change in OI for 26th March 2020

Some good buying has been seen in the lower levels of the Nifty and Bank Nifty that helps both of the indices to close in green territory. Now we will do Nifty and Bank Nifty analysis based on OI and Change in OI, India Vix and Trend Cycles for 26th March 2020.

Bank Nifty Option Front
Bank Nifty has given closing at 18481.05 on spot on 25th March 2020. On the options front, maximum Put open interest was at 14,000 followed by 15,000 levels, while maximum Call OI was at 21,000 followed by 19,000 levels.

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 16000 to 21000.

1. Highest Call at 21,000. 
2. Highest Put at 14,000. 
3. Pivot Level at 18,000.
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 8317.85 at spot on 25th 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.

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

1. Highest Call at 9000. 
2. Highest Put at 7,500. 
3. Pivot Level at 8000.

India Vix
India VIX closed at 77.62 level with 7.16% fall. 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
Bank Nifty Trend Cycles
Nifty Trend Cycles


The OI scattered here and there that indicates volatility will be there in the market. Some cooling has been seen today in VIX, if VIX continues to cool down, it will help the market to form a bottom. On Trend cycles, some positive cycles are started appearing, this is also an indication of good sign to market recover. However, volatility is still high in the market.
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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