Nifty and Bank Nifty Analysis for 12th June 2020

Nifty and Bank Nifty opened with a marginal loss and started correcting from early trades as the session progressed the sell-off intensified that made indices close near the lowest point of the day.
Let’s check the data and do the analysis for Bank Nifty and Nifty for 12th 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 20525.15 on spot on 11th June 2020. On the options front, maximum Put open interest was at 19,500 followed by 19,000 levels, while maximum Call OI was at 21,500 followed by 22,000 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 19000 to 21500.

1. Highest Call at 21,500. 
2. Highest Put at 19,500. 
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 9902.0 at spot on 11th June, 2020. The maximum Call open interest stood at 10,500 and then 10,100 levels while maximum Put OI was at 9,500 and then 9,000 levels. Significant call writing was seen at 10,100 followed by 10,000 levels, whereas a good addition of the put has been seen at 9900. Options data indicated an immediate trading range between 9700 and 10,100 levels.

1.  Highest Call at 10500. 
2.  Highest Put at 9,500
3. Pivot Level at 9,900.

India Vix
India VIX moved up marginally by 0.75 per cent to 29.66 level. However, the volatility index is still ruling at lower levels, thus not indicating any major fall in the near term. 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

Pivot level shifted down, indicates the bearish sentiment for the indices. Also, the call writers are looking stronger as of now. Bank Nifty has developed unwinding and long cycles whereas Nifty is moving in long-short cycles.
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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