Nifty and Bank Nifty Analysis for 18th June 2020

Bank Nifty opened on a negative note, but started moving higher. It rallied around 650 points from its opening low of 19,978, but failed to sustain above the 20,600 mark and corrected again. Eventually, it closed the session a tad above 20,200
Nifty opened with a marginal loss and remained volatile in a 170-point range. It moved above the 10,000 mark, but failed to sustain at higher levels and corrected to its opening price of 9,877.
Let’s check the data and do the analysis for Bank Nifty and Nifty for 18th 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 20201.75 on spot on 17th June 2020. On the options front, maximum Put open interest was at 19,000 followed by 19,500 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 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 21000.

1. Highest Call at 21,000. 
2. Highest Put at 19,000. 
3. Pivot Level at 20,000.
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 9881.15 at spot on 17th June, 2020. The maximum Call open interest stood at 10,000 and then 10,300 levels while maximum Put OI was at 9,500 and then 9,700 levels. Significant call writing was seen at 9,900 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 10,000 levels.

1.  Highest Call at 10000. 
2.  Highest Put at 9,500
3. Pivot Level at 9,900.

India Vix
India VIX moved up 1.18 per cent to 33.35 level. Volatility is gradually moving higher and any further rise in volatility index may result in a roller-coaster move in the market. 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


The India VIX is increasing that indicates we may see the roller coaster ride in the market. Call writers are looking are driving seat. Bank nifty and Nifty is showing short cover-short cycles that indicates the weakness.
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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