Option Chain Analysis: Nifty and Nifty Bank 7th July 2023

Nearing their all-time highs, both Nifty and Nifty Bank experienced some profit bookings, causing them to enter the negative territory and ultimately close with losses. Now, we will analyze the option chain data, PCR, Max Pain, and open interest build-ups for these two indices. Let's begin.

Bank Nifty Option Front

On July 7th, 2023, the spot market closing for Bank Nifty stood at 44,925.00. Turning our attention to the options market, we noticed the highest open interest for Put options at 45,000, closely followed by 44,700. As for Call options, the maximum open interest was observed at 45,000, with 46,000 being the next significant level. The range of strike prices between 44,500 and 45,500 has exhibited robust open interest. Furthermore, we have observed a significant presence of option writers around the at-the-money (ATM) strike.

Bank Nifty Option Chain, 7th July 2023

Trading Range Of Bank Nifty

Let's determine the trading range for Bank Nifty. The trading range is typically defined as the range between the highest call strike and the highest put strike. To find this range, we should locate the rows with the highest call open interest (OI) and highest put OI in the Bank Nifty option chain. Based on the available information, it appears that the trading range is around 44,500 to 45,500.

1. Highest Call at 45,000.
2. Highest Put at 45,000.
3. Pivot Level at 45,000.

The highest call level serves as a strong resistance, while the highest put level functions as a robust support for both Nifty and Bank Nifty. The pivot level represents a critical point that both bulls and bears are reluctant to relinquish easily. Typically, a tug of war ensues between the bulls and bears around this pivotal level.

Nifty Option Front

On July 7th, 2023, Nifty concluded the spot market session with a closing value of 19,331.80. Examining the options market, we observed that the highest open interest for Put options was at the 19,000 level, closely followed by 19,300. Conversely, the maximum open interest for Call options was observed at the 19,400 level, with 19,500 being the subsequent significant level.
Nifty Option Chain, 7th July 2023

Call addition was seen at 19,400 followed by 19,500 levels, while there was meaningful Put addition at 19,300 followed by 19,400 levels. Options data suggested a shift in trading range between 19,300 and 19,500 levels.

1. Highest Call at 19400.
2. Highest Put at 19400.
3. Pivot Level at 19400.

OI Build Ups

Bank Nifty OI Build Ups, 7th July 2023

Nifty OI Build Ups, 7th July 2023


Based on the option data, both indices have closed at crucial levels. For Bank Nifty pivot level is 45,000, while Nifty has pivot at 19,400. These levels hold significant importance as they can make or break the market's direction. The market's trajectory will be determined by how these levels are approached.

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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