Nifty recovers 6 percent from Demonetisation day lows – Nifty Analysis 19.3.2020

Nifty 5 Min Intraday Chart 19.3.2020
Nifty 5 Min Intraday Chart 19.3.2020

Open 8063 High 8575 Low 7832 Close 8263

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. Nifty 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.  

Nifty opened with a huge gap down of 405 points at 8063 levels and fell another 224 points from opening levels to touch a day low level of 7832 at around 9.25 am.

The index took support at 7850 levels 555 points from day low levels to touch a day high level of 8391 at around 11.15 am. The index consolidated between 8400-8150 levels throughout the afternoon session and broke out of the consolidation range on the upside to touch a new day high level of 8575 at around 2.10 pm.

As expected Nifty faced heavy resistance at 8500 levels and could not move past it. Nifty fell 369 points from day high levels in the late afternoon session to trade around 8250 levels.

Nifty closed the day at 8263 down 205 points or 2.42 percent.

Nifty is highly volatile these days. Trading these kinds of volatile markets is very difficult.Nifty is falling heavily everyday. Todays low of 7832 may act as a crucial support level in the coming days.Immediate support level is 8000 and immediate resistance level is 8500. Nifty will gain upside strength only above 9500 levels.

Market Breadth Nifty

Advances 10 Declines 40

The biggest loser among Nifty 50 index was Infratel down 18.28 percentĀ  and highest gainer was ITC up 6.77 percent.

FNO Data Analysis

Nifty March Futures are trading at a discount of 52 points.

For March 26 expiry

Highest open interest Call side is at 12000 ce around 21.53 lakh shares

Highest open interest Put side is at 11000 pe around 18.65 lakh shares

Huge amount of put writing at 7500 pe means 7500 will act as strong support level for Nifty

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