Bank Nifty and Nifty Analysis for 30th April 2020

Nifty breached a major resistance today and gave a closing well above 9500 whereas Bank Nifty also manage to gave a closing above 21000. Let’s do the analysis for Bank Nifty and Nifty for 30th April, 2020 based on OI, Change in OI, India VIX and Trend Cycles. 

Bank Nifty Option Front
Bank Nifty has given closing at 21090.20 on spot on 29th April 2020. On the options front, maximum Put open interest was at 20,000 followed by 20,500 levels, while maximum Call OI was at 22,000 followed by 21,500 levels. The OI positions are scattered at various strike rates, indicates the volatility can remain in the market. Call Unwinding and Put addition have been seen around the ATM 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 range seems to be 20000 to 22000.
1. Highest Call at 22,000. 
2. Highest Put at 20,000. 
3. Pivot Level at 21,000.

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 9553.35 at spot on 29th April, 2020. On the options front, maximum Call OI was at 10,000 and then 9,500 levels while maximum Put OI was at 9,000 and then 9,500 levels. The OI positions are scattered at various strike rates, indicates the volatility can remain in the market. Some call unwinding and Put addition were there around the ATM strike. The trading Range of the Nifty is between 9500 and 9700.

1.  Highest Call at 10000. 
2.  Highest Put at 9,500. 
3. Pivot Level at 9500.

India Vix
India VIX declined by 4.29% to 33.83, much lower than the high of 83. Still, it is high. A higher VIX suggests that volatile swings could continue in the market. Volatility has to cool down from the higher levels and only then the Indian market could see stability and have a smooth ride. However, Volatility has been started cooling from higher levels.
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.
Derivative Data

Max Pain
Bank Nifty

Trend Cycles
Some data are not available yet.

The OI is scattered huge around the pivot level both side in calls as well as put sides. Pivot level for bank nifty is 21000, if bank nifty sustains above this level, we will see a move towards 21500. In Nifty, the pivot level is 9500, this level will decide the movement in nifty tomorrow. If nifty breach 9,500 then 9700 is on the cards.
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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