TICKSEAT

Research & Analysis
Trend : BANK NIFTY
analysis for 2023-05-18

FACTORS

DATA

INDICATION

CURRENT PRICE
43698.70
PCR
0.76

OPTION CHAIN

CALL IN THE MONEY
CALL OUT OF THE MONEY
PUT IN THE MONEY
PUT OUT OF THE MONEY
SHORT BUILD UP
SHORT BUILD UP
SHORT COVERING
SHORT BUILD UP

OPEN INTREST

CALL OI
CALL OI CHANGE
PUT OI
PUT OI CHANGE
33M
11M
25M
-440K
MAX PAIN
BULLISH

INDICATORS

OCILATOR
MOVING AVARAGE
Trend : BANK NIFTY

No Data Found

BANK NIFTY
Bank Nifty Market Analysis: Option Chain Short Build-Up and Max Pain at 43600 Indicate Bearish Sentiment Analysis :
Key Points

Overview :

Headline: Bank Nifty Market Analysis: Option Chain Short Build-Up and Max Pain at 43600 Indicate Bearish Sentiment

Key Points:
– Bank Nifty value on May 17: 43698.70 with PCR of 0.76
– Option open interest for May 18 expires shows short build-up in call and put OI for specific strike prices like 43800 and 43500
– Max Pain at 43600 suggests bearish sentiment in the market
– Oscillators and Moving Average signals also indicate a bearish sentiment
– Strong resistance at 44160 and strong support at 43516 and 43038
– Overall, the market is showing signs of a bearish trend with potential downward movement in the near future.

Research & Analysis

1. Introduction:
This report analyzes the current state of the Bank Nifty market, using the provided data to assess trends and make predictions regarding its potential direction. The report covers various aspects of the market, including Bank Nifty value, PCR ratio, option open interest, Max Pain, oscillators, moving average, and support and resistance levels.

2. Bank Nifty Value and PCR:
On May 17, Bank Nifty closed at 43698.70. The PCR ratio was 0.76, indicating that there were more puts than calls in the market. This implies that investors are more bearish about the market.

3. Option Open Interest:
For May 18 expiry, the total call OI was 33 million, with an increase of 11 million in call OI change. The total put OI was 25 million, with a decrease of 440K in put OI change.
For strike 43500, there was a short build-up in put OI, with an increase of 1.2 million OI change, and short build-up in call OI with an increase of 2.5 million OI change. This data indicates that the market expects the Bank Nifty to remain range-bound or slightly bearish in the short term.
For strike 43800, there was a short build-up in call OI with an increase of 2.1 million OI change and short-covering in put OI with a decrease of 780K OI change. This data indicates that the market expects the Bank Nifty to remain range-bound or slightly bullish in the short term.
On the option chain, there was a short build-up in in-the-money and out-of-the-money call strikes, whereas there was short-covering in in-the-money and out-of-the-money put strikes.

4. Max Pain:
Max Pain is the theoretical price at which the maximum number of options contracts would expire worthless. On May 17, the Max Pain level was 43600, indicating that the market expects the Bank Nifty to remain around this level.

5. Oscillators and Moving Average:
There are currently no bullish signals from the oscillators, with 8 neutral signals and 2 bearish signals. However, the moving average signals indicate a bullish trend, with 10 signals being bullish, 2 signals being neutral, and 8 signals being bearish.

6. Support and Resistance Levels:
The strong support levels for Bank Nifty are at 43516 and 43038, while the strong resistance level is at 44160.

7. Conclusion:
Based on the analysis, the Bank Nifty market is currently range-bound with a bearish bias. The option open interest data suggests that the market expects the Bank Nifty to remain in a narrow range. However, the moving average signals indicate a bullish trend, which could indicate a potential reversal. Overall, investors should remain cautious and wait for a clear trend to emerge before taking any position in the market.

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