Nifty and Bank Nifty Analysis for 28th May 2020

The Indian market started on the positive note however got some sell initial trades. Both the indices witnessed huge buying on lower levels that took Nifty and Bank Nifty to a big rally.
Nifty protected one of its major support that is 9000 mark and witnessed brisk buying that took Nifty to post a rally of 300 points.

Especially, Bank Nifty continued its outperformance for the second consecutive session and rallied 7.28 per cent with the help of fresh longs accompanied by short covering. The bulls were aggressive from initial trades and kept the ball in their favour throughout the session.
Let’s check the data and do the analysis for Bank Nifty and Nifty for 28th May 2020 based on Open Interest, Change in OI, PCR, Max pain and Trend Cycles.

Bank Nifty Option Front
Bank Nifty has given closing at 18710.55 on spot on 27th May 2020. On the options front, maximum Put open interest was at 17,500 followed by 17000 levels, while maximum Call OI was at 19,000 followed by 20,000 levels. The OI positions are scattered at various strike rates, indicates the volatility can remain in the market. A good call addition and put addition has been seen around the ATM strike.

Trading Range Of Bank Nifty
Now time to find out the trading range of the bank nifty. Trading Range is a general range between the highest call strike and highest put strike. To find the range, 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 17500 to 19500.

1. Highest Call at 19,000. 
2. Highest Put at 17,500. 
3. Pivot Level at 18,500.
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 9314.95 at spot on 27th May, 2020. The maximum Call open interest stood at 9,500 and then 9,300 levels while maximum Put OI was at 9,000 and then 8,500 levels. Significant Put writing was seen at 9,200 followed by 9,100 levels, whereas Call Unwinding at 9,200 followed by 9,100 levels. Options data indicated an immediate trading range between 9,200 and 9,500 levels.

1.  Highest Call at 9500

2.  Highest Put at 9,000. 
3. Pivot Level at 9300.

India Vix
India VIX fell 0.64 per cent to 31.27 level. Volatility has been falling down from the last six consecutive sessions, which supported the index to hold the immediate support zone. 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
Pre. Max Pain
Bank Nifty

Trend Cycles (15 min TF)
Bank Nifty Trend Cycles

Nifty Trend Cycles


The Pivot level in Bank Nifty and Nifty shifted up, indicates some positivity in it. The Max Pain for both the indices also shifted higher. On the data front, Put writers look stronger but call writers are also not escaping from there so we may see a fighting expiry. Trend Cycles show clear fresh buying in Nifty whereas Bank Nifty witnessed Fresh buying with Short Cover.
Open Interest Images are generated by the Telegram Bot: OIinAction. You can also join it and can generate OI images for free.
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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