Nifty and Bank Nifty Analysis for 7th April 2020

The last Friday we witnessed some VIX crash that’s the reason PE were lost their premium, however, Nifty face some sell of and Settled below 8100 whereas bank nifty closed below 17300. Now, we will do Nifty and Bank nifty analysis for 7th April 2020, based on OI, Change in OI, India VIX and Trend Cycles.

Bank Nifty Option Front
Bank Nifty has given closing at 17249.3 on spot on 3rd April 2020. On the options front, maximum Put open interest was at 17,000 followed by 15,000 levels, while maximum Call OI was at 18,500 followed by 18,000 levels. OI positions are scattered at various strike rates, indicates the volatility can remain in the market. Major call writing has been seen at 18000 and 17500.

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 18500.
1. Highest Call at 18,500. 
2. Highest Put at 17,000. 
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 8083.8 at spot on 3rd April, 2020. On the options front, maximum Call OI was at 9,000 and then 8500 levels while maximum Put OI was at 8,000 and then 7,500 levels. Options OI data lay scattered at various strike prices, indicate the volatility. Trading of the Nifty is between 7500 and 9000.

1. Highest Call at 9000. 
2. Highest Put at 7,500. 
3. Pivot Level at 8000.
India Vix
India VIX closed at 55.30 level with 7.91% fall. A higher VIX beyond 50 level suggested 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

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. Indices are developing the cycles that indicate the weakness in it. Pivot Levels in the both the indices shifted down, indicating the weakness.
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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