Nifty and Bank Nifty Analysis for 19th June 2020

Bank Nifty and Nifty opened with a gap down but saw an opportunity in this gap down and did good buying that started pulling the index higher from early trade. The index continued to make higher highs as the session progressed and ended near the day’s high point.

Let’s check the data and do the analysis for Bank Nifty and Nifty for 19th 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 20956.30 on spot on 18th June 2020. On the options front, maximum Put open interest was at 20,000 followed by 19,000 levels, while maximum Call OI was at 22,000 followed by 21,000 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 22000.

1. Highest Call at 22,000. 
2. Highest Put at 20,000. 
3. Pivot Level at 21,000.
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 10091.65 at spot on 18th June, 2020. The maximum Call open interest stood at 10,500 and then 10,000 levels while maximum Put OI was at 9,500 and then 9,600 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 10,300 levels.

1.  Highest Call at 10500. 
2.  Highest Put at 9,500
3. Pivot Level at 10,000.

India Vix
India VIX moved down 5.70 per cent to 31.45 level. The volatility index breached its rising streak of the last five sessions, which provided some comfort and support to 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

Put writers have changed the game. They have the upper hand now. So, indices seems bullish on OI data. However, the wild swing may continue as the VIX is higher.
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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