Banknifty Analysis 20.3.2020

Banknifty 5 Min Intraday Chart 20.3.2020
Banknifty 5 Min Intraday Chart 20.3.2020

Open 19898 High 20924 Low 19265 Close 20317

News that two existing medicines are quite helpful in treating coronavirus is very positive. Yesterdays low of 18695 on the Banknifty may act as a temporary bottom if no major negative news is there. 

Banknifty opened with a gap down of 185 points at 19898 levels and had a volatile early morning session in which it first touched a high of 20225 in the first 10 minutes and then fell 958 points from day high levels to touch a day low levels of 19265 at around 9.35 am.

Thankfully Banknifty did not fall any lower and took support at 19265 levels to trend upwards for the rest of the day. Banknifty rallied 1672 points from day low levels to touch a day high level of 20924 at around 1.45 pm.

Banknifty faced heavy resistance at 20900-21000 levels and fell 1190 points from day high levels to trade around 19750 levels in the afternoon session.

Banknifty held support of 19750 levels and rallied 709 points from 19750 levels in the late afternoon session.

Banknifty closed the day at up 482 points or 5.83 percent.

Banknifty closed the day at 20317 up 234 points or 1.17 percent.

Banknifty is highly volatile these days. Trading these kinds of volatile markets is very difficult. 19500 level is now a crucial support for Banknifty while 21000 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 8 Declines 4

The biggest loser among Banknifty index was RBL Bank down 3.73 percent and highest gainer was Bandhan Bank up 17.06 percent.

FNO Data Analysis

Banknifty March Futures are trading at a discount of 57 points.

For March 26 expiry

Highest open interest Call side is at 25000 ce around 3.76 lakh shares

Highest open interest Put side is at 18000 pe around 2.47 lakh shares

Huge amount of call writing at 25000 ce means 25000 will act as strong resistance level for Banknifty

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