Nifty and Bank Nifty Analysis for 25th June 2020

The gap down opening was seen today in Bank Nifty and Nifty but Nifty faced the great resistance around 10550 whereas Bank Nifty got resistance and rejection from 22500, we got a huge sell-off.
Let’s check the data and do the analysis for Bank Nifty and Nifty for 25th 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 21426.80 on spot on 24th June 2020. On the options front, maximum Put open interest was at 21,000 followed by 20,000 levels, while maximum Call OI was at 23,000 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 23000.

1. Highest Call at 23,000. 
2. Highest Put at 21,000. 
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 10471.0 at spot on 23rd June, 2020. In monthly options, maximum Put open interest stood at 10,000 level followed by 10,100, while maximum Call OI was at 10,500 followed by 10,600 levels. Call writing was seen at 10,400 followed by 10,600 levels, while there was meaningful Put unwinding at 10,400 followed by 10,000 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 down 0.81 per cent to 29.58 and overall consolidating volatility is giving comfort to the bulls as the market base shifted higher. 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

It seems the call writers have taken control of the market. Max Pain has shifted down, indicates bearish undertone of the market.
However, on Trend Cycles Bank Nifty shows Short covering- unwinding whereas Nifty shows long cycles and 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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