Most of the trades who trade in Options prefer to only trade in NIFTY and Banknifty . Trading in Index has multiple benefits like
- Good Liquidity for sure Order execution even at market Price
- Trading on movement of markets as whole
- Trade multiple strategies over different time periods.
- Can trade in Futures , Options and ETF’s
- No worries of Operator manipulation
- Only focus on Banknifty and Nifty indices rather than tracking so many stocks
However it becomes critical how to decide range in which markets are expected to trade. Nifty Bank nifty analysis screener helps to analyze Nifty and Bank nifty for Index traders so easily.
How to find Nifty Monthly Range , Weekly Range and Daily expected range.
We know that traders are actively trading in markets and creating positions in Options by selling capps and puts which are far Out of Money . Using the premiums which are being asked for selling Far OTM options , we can calculate India Vix which is expected Annual Volatility which stock traders Expect in Markets. We can use India Vix to calculate expected range
Nifty Support and Resistance levels
We can also use Options data to find out the Support and resistance levels of Nifty and Bank nifty. The Option strike price where highest number of Puts are written acts as support levels while point where highest number of calls are written acts as resistance levels. Kindly note that these levels keep changing during markets as and when new positions are created , so you need to keep tracking this scanner in live markets
Nifty Max Pain and Bank nifty Max Pain
This scanner also helps you see Max pain strike of Nifty and Banknifty. Max pain strike is the strike where option writers are going to lose minimum while option buyers are going to lose maximum. It represents the most probable place where expiry is likely to happen
Nifty Futures Open interest
Checking Nifty Futures open interest with respect to Nifty Price helps to find whether traders are building long positions or short positions.