Banknifty witnessed its biggest ever fall – Nifty Analysis 23.3.2020

Banknifty 5 Min Intraday Chart 23.3.2020
Banknifty 5 Min Intraday Chart 23.3.2020

Open 18311 High 18895 Low 16791 Close 16917

Coronavirus cases have been rising continuously in India since last few days which has led to lockdown in many states of India. Coronavirus is a health crisis that is causing deep economic problems. This along with SEBI’s position and margin rules led to the biggest fall in Markets in which Banknifty fell 3399 points. This has never happened before. Markets are highly unpredictable these days. Nobody knows when or at which level Banknifty will make a bottom..

Banknifty opened with a huge huge gap down of 2006 points at 18311 levels and fell another 596 points from opening levels to touch a day low level of 17738 at around 9.55 am. At this time Sensex had hit a lower circuit of 10 percent and trading was halted at BSE NSE also halted the trading session for 1 hour.After the trading halt Banknifty fell another 498 points from circuit halt levels to touch a new day low level of 17235 at around 11.20 am.

Banknifty recovered 579 points from day low levels to trade around 17755 levels at around 11.45 pm. Banknifty could not move any higher and fell another 998 points in the late afternoon session to touch a new day low level of 16791 just before the closing bell.

Banknifty closed the day at around day low levels of 16917 down 3399 points or 16.73 percent.

Banknifty is highly volatile these days. Trading these kinds of volatile markets is very difficult. 16500-16000 may act as a crucial support for Banknifty. 18000,18500 will act as crucial resistance level for Banknifty. Banknifty will gain upside strength only above 23000 levels.

Market Breadth Banknifty

Advances 0 Declines 12

The biggest loser among Banknifty index was Axis Bank down 27.6 percent

Market Breadth was absolutely horrible with not a single stock ending the day in green.

FNO Data Analysis

Banknifty March Futures are trading at a discount of 43 points.

For March 26 expiry

Highest open interest Call side is at 25000 ce around 3.39 lakh shares

Highest open interest Put side is at 17000 pe around 1.78 lakh shares

Huge amount of call writing at 19000 ce means 19000 will act as strong resistance level for Banknifty

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