Nifty and Bank Nifty Analysis for 1st July 2020

Nifty opened on a positive note, but failed to hold above 10,400 level and corrected towards the 10,270 mark. It closed flat to negative near the 10,300 level.
Bank Nifty opened positive, but failed to hold above 21,650 level and fell towards the 21,212 mark. It closed flat and has been moving between 20,900 and 21,800 levels since the last four sessions.

Let’s check the data and do the analysis for Bank Nifty and Nifty for 1st July 2020 based on Open Interest, Change in OI, PCR, Max pain and Trend Cycles.
Bank Nifty Option Front
Bank Nifty has given closing at 21370.15 on spot on 30th June 2020. On the options front, maximum Put open interest was at 20,500 followed by 20,000 levels, while maximum Call OI was at 22,000 followed by 22,500 levels. The OI positions are scattered at various strike rates, indicates the volatility can remain in the market. A good call 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 20000 to 22000.

1. Highest Call at 22,000. 
2. Highest Put at 20,500. 
3. Pivot Level at 21,500.
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 10302.10 at spot on 30th June, 2020. In options front, maximum Put open interest stood at 10,000 level followed by 10,300, while maximum Call OI was at 10,300 followed by 11,000 levels. Call writing was seen at 10,400 followed by 10,500 levels, while there was meaningful Put writing at 10,400 followed by 10,500 levels. Options data suggested a shift in trading range between 10,000 and 10,500 levels.

1.  Highest Call at 10500. 
2.  Highest Put at 10,000
3. Pivot Level at 10,300.

India Vix
India VIX moved up marginally by 0.72 per cent to 29.11 level. However, overall lower volatility suggests a bullish stance and the emergence of multiple supports at every decline. 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

Pre. Max Pain
Bank Nifty

Trend Cycles (EOD)
Bank Nifty Trend Cycles

Nifty Trend Cycles

Both Bank Nifty and Nifty look into a tight range. Both Bulls and bears don’t want to lose their grip on the market. The max pain levels are almost constant that also indicates the choppy market ahead. Trend cycles are showing weakness on it.
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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