Banknifty Analysis 19.3.2020

Banknifty 5 Min Intraday Chart 19.3.2020
Banknifty 5 Min Intraday Chart 19.3.2020

Open 19428 High 21035 Low 18675 Close 20083

As coronavirus cases are surging across the world and businesses are shutting down as a precaution measure Global as well as Indian markets are bleeding. Banknifty today reached demonetisation day lows but thankfully it did not broke those levels and recovered 9.5 percent intraday but ended the day lower. Markets will rally only when there is a cure for Coronavirus.

Banknifty opened with a huge gap down of 1149 points at 19428 levels and fell another 742 points from opening levels to touch a day low level of 18675 at around 9.25 am.

The index took support at 18700 levels and rallied 1727 points from day low levels to touch a day high level of 20424 at around 11.15 am. The index consolidated between 20100-19700 levels throughout the afternoon session and broke out of the consolidation range on the upside to touch a new day high level of 21035 at around 2.10 pm.

As expected Banknifty faced heavy resistance at 2100 levels and could not move past it. Banknifty fell 1102 points from day high levels in the late afternoon session to trade around 19980 levels.

Banknifty closed the day at 20083 down 496 points or 2.41 percent.

Banknifty is highly volatile these days. Trading these kinds of volatile markets is very difficult. 18500 level is now a crucial support for Banknifty while 19000 will act as an immediate support level.22000,23000 will act as crucial resistance level for Banknifty. Banknifty will gain upside strength only above 25000 levels.

Market Breadth Banknifty

Advances 4 Declines 8

The biggest loser among Banknifty index was Idfc First Bank down 14.88 percent and highest gainer was Rbl Bank up 4.19 percent.

FNO Data Analysis

Banknifty March Futures are trading at a discount of 123 points.

For March 26 expiry

Highest open interest Call side is at 23000 ce around 2.27 lakh shares

Highest open interest Put side is at 20000 pe around 1.03 lakh shares

Huge amount of call writing at 23000 ce means 23000 will act as strong resistance level for Banknifty

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