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Nifty and Bank Nifty Analysis for 2nd June 2020

On positive global clues, Indian market opened with a gap up and kicked start the June on Positive note. The indices continued its bullish momentum however some profit came at the higher levels.

Let’s check the data and do the analysis for Bank Nifty and Nifty for 2nd 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 19959.9 on spot on 1st June 2020. On the options front, maximum Put open interest was at 19,000 followed by 18500 levels, while maximum Call OI was at 21,000 followed by 20,000 levels. The OI positions are scattered at various strike rates, indicates the volatility can remain in the market. A good call addition and put addition has been seen around the ATM strike.

Change in OI for Bank Nifty 1 june 2020

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 9811.25 at spot on 1st June, 2020. The maximum Call open interest stood at 10,000 and then 10,500 levels while maximum Put OI was at 9,000 and then 9,500 levels. Significant Put writing was seen at 9,400 followed by 9,200 levels, whereas there was a good Call writing at 9,500 followed by 10,000 levels. Options data indicated an immediate trading range between 9,700 and 10,000 levels.


1.  Highest Call at 10000

2.  Highest Put at 9,000. 
3. Pivot Level at 9800.

 

India Vix

India VIX marginally rose by 1.72 % to 30.74 level. 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

19700

19000

1.13

Nifty

9700

9450

1.53

Remarks

 

 

 

 

Trend Cycles (EOD)

 It will be updated soon.

Conclusion

The Pivot level in Bank Nifty and Nifty shifted up, indicates some positivity in it. The Max Pain for both the indices also shifted higher. On the data front, Put writers look stronger. 

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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Nifty and Bank Nifty Analysis for 2nd June 2020 Reviewed by Kumar Chandan on June 01, 2020 Rating: 5

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