Banknifty Analysis 27.3.2020

Banknifty 5 Min Intraday Chart 27.3.2020
Banknifty 5 Min Intraday Chart 27.3.2020

Open 20801 High 21462 Low 19580 Close 19969

Today MPC led by RBI Governor Shaktikanta Das decided to reduce repo rate by 75 basis points to 4.4 per cent. The reverse repo rate was cut by 90 bps to 4 per cent A moratorium of 3 months of EMIs on all outstanding loans was announced along with other measures

Banknifty opened with a huge gap up of 1188 points at 20801 levels and touched a high of 21462 at around 10.05 am. As expected Banknifty faced heavy resistance at 21500 levels and fell around 1737 points from day high levels to touch a day low level of a low of 19731 at around 11.10 am.The fall came after the RBI press conference at 10 am.

Banknifty traded between 17700 – 18500 levels for the rest of the day with a bearish bias.

Banknifty closed the day at 19969 up 355 points or 1.81 percent

Banknifty is highly volatile these days. Trading these kinds of volatile markets is very difficult. Banknifty is not breaching the recent low levels of 16100 levels the level of 16100 can be treated as a temporary bottom.18500-19000 will act as important support levels while 21000 – 21500 levels will act as a stiff resistance level.Banknifty will gain upside strength only above 22000 levels.

Market Breadth Banknifty

Advances 7 Declines 4 Unchanged 1

The biggest loser among Banknifty index was Indus Ind Bank down 5.68 percentĀ  and highest gainer was Bandhan Bank up 16.86 percent.

FNO Data Analysis

Banknifty April Futures are trading at a premium of 183 points.

For April 1 expiry

Highest open interest Call side is at 25000 ce around 2.45 lakh shares

Highest open interest Put side is at 17000 pe around 1.50 lakh shares

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

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