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Nifty and Bank Nifty Analysis for 29th June 2020

Nifty and Bank Nifty was in rangebound on Friday. Nifty oscillated in a 100-point range throughout before ending with gains for yet another day. The market showed resilience in opening trade as it started proceedings near the high point of the day.


However, the index soon scalped most of its opening gains and spent the remaining part of the session recouping those lost gains. By the end of the session, Nifty managed to reach close to the high point of the session.
Let’s check the data and do the analysis for Bank Nifty and Nifty for 26th 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 21592.05 on spot on 26th June 2020. On the options front, maximum Put open interest was at 20,000 followed by 19,500 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 22500.

1. Highest Call at 23,000. 
2. Highest Put at 20,000. 
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 10383.90 at spot on 26th June, 2020. In options front, maximum Put open interest stood at 10,000 level followed by 10,300, while maximum Call OI was at 11,000 followed by 10,500 levels. Call writing was seen at 10,500 followed by 10,400 levels, while there was meaningful Put writing at 10,300 followed by 10,200 levels. Options data suggested a shift in trading range between 10,000 and 10,500 levels.

1.  Highest Call at 11000. 
2.  Highest Put at 10,000
3. Pivot Level at 10,300.


India Vix
India VIX moved up 3.34 per cent to 28.73 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

Symbol
Pre. Max Pain
PCR (OI)
Bank Nifty
21500
21500
0.90
Nifty
10300
10300
1.21
Remarks








Trend Cycles (EOD)
 
Bank Nifty Trend Cycles

Nifty Trend Cycles

Conclusion
Bulls and Bears both look stronger. They both don’t want to lose their controls so Indices looks range bound. However, wild swings can be seen in the market as due to volatility.
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 29th June 2020 Reviewed by Kumar Chandan on June 28, 2020 Rating: 5

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