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Bank Nifty and Nifty Analysis for 3rd June 2020

Nifty and Bank Nifty opened on a positive note and slipped into negative in initial trades but this opportunity was used by bulls for fresh buying that gave a positive momentum for the indices and closed nears the day high.


Let’s check the data and do the analysis for Bank Nifty and Nifty for 3rd June 2020 based on Open Interest, Change in OI, PCR, Max pain and Trend Cycles.

Bank Nifty Option Front

Bank Nifty has given closing at 20530.2 on spot on 2nd June 2020. On the options front, maximum Put open interest was at 19,000 followed by 20000 levels, while maximum Call OI was at 21,000 followed by 22,000 levels. The OI positions are scattered at various strike rates, indicates the volatility can remain in the market. A good 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 19500 to 22000.


1. Highest Call at 21,000. 

2. Highest Put at 19,000. 

3. Pivot Level at 20,500.

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 9979.1 at spot on 2nd June, 2020. The maximum Call open interest stood at 10,000 and then 10,500 levels while maximum Put OI was at 9,800 and then 9,400 levels. Significant Put writing was seen at 9,800 followed by 9,900 levels, whereas there was a good Call writing at 10,000 followed by 10,200 levels. Options data indicated an immediate trading range between 9,900 and 10,200 levels.


1.  Highest Call at 10000

2.  Highest Put at 9,800. 
3. Pivot Level at 10,000.


 

India Vix

India VIX moved down 2.05 per cent to 30.11 level. The volatility index is hovering around its support at 30 levels and a lower VIX is supporting the higher market base. 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

 

Symbol

Max Pain

Pre. Max Pain

PCR (OI)

Bank Nifty

20000

19700

1.59

Nifty

9800

9700

1.28

Remarks

 

 

 

 

Trend Cycles (EOD)



Conclusion

The Pivot levels have been shifted up for the bank nifty and nifty supported by max pain. Put writers have stronger hands. Bank Nifty has shown some long build-up. Nifty is also showing long build-up.

 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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Bank Nifty and Nifty Analysis for 3rd June 2020 Reviewed by Kumar Chandan on June 02, 2020 Rating: 5

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