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Nifty and Bank Nifty analysis for 17th April 2020


After witnessing a negative start, the market recovered from the morning lows, but did not see any runaway rally. Nifty and Bank Nifty consolidated around throughout the day. Now, we will do analysis for bank nifty and nifty based on OI, Change in OI, India VIX and Trend Cycles for 17th April 2020.
Bank Nifty Option Front
Bank Nifty has given closing at 19400.0 on spot on 16th April 2020. On the options front, maximum Put open interest was at 19,000 followed by 18,000 levels, while maximum Call OI was at 20,000 followed by 21,000 levels. The OI positions are scattered at various strike rates, indicates the volatility can remain in the market. Major put writing has been seen at 19000 and 18500 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 range seems to be 18000 to 21000.
1. Highest Call at 20,000. 
2. Highest Put at 18,000. 
3. Pivot Level at 19,500.
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 8992.8at spot on 16th April, 2020. On the options front, maximum Call OI was at 9,500 and then 9000 levels while maximum Put OI was at 8,000 and then 8,500 levels. The OI positions are scattered at various strike rates, indicates the volatility can remain in the market. The trading Range of the Nifty is between 8,500 and 9500.

1. Highest Call at 9500. 
2. Highest Put at 8,500. 
3. Pivot Level at 9000.

India Vix
India VIX considerably cooled down by 7.32% and closed at 46.09. A higher VIX around 50 level 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.
Nifty and Bank Nifty Trend Cycles
 
Bank Nifty Trend Cycles 

Nifty Trend Cycles

Conclusion:
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. However, volatility is still high in the market. Trend Cycles are forming a long unwinding and Long cycles. The trend cycles indicates the sell on rise 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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Nifty and Bank Nifty analysis for 17th April 2020 Reviewed by Kumar Chandan on April 16, 2020 Rating: 5

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