Nifty witnessed its biggest ever fall – Nifty Analysis 23.3.2020

Nifty 5 Min Intraday Chart 23.3.2020
Nifty 5 Min Intraday Chart 23.3.2020

Open 7945 High 8159 Low 7583 Close 8610

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 Nifty hit second lower circuit in a month. This has never happened before. Markets are highly unpredictable these days. Nobody knows when or at which level Nifty will make a bottom.. 

Nifty opened with a huge huge gap down of 800 points at 7945 levels and at around 10 am since 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 there was no sizeable recovery in Nifty and it fell 213 points from circuit levels to touch a day low levels of 7697 at around 12.20 pm.

Nifty recovered 177 points from day low levels to trade around 7860 levels at around 12.45 pm. Nifty could not move any higher and fell another 285 points in the late afternoon session to touch a new day low level of 7583 just before the closing bell.   

Nifty closed the day at 7610 down 1135 points or 12.98 percent.  

Nifty is highly volatile these days. Trading these kinds of volatile markets is very difficult.Nifty is falling heavily everyday. Nobody knows when or at what level Nifty will bottom out. 7200-7000 levels may act as support level for Nifty. 8000-8500 levels will act as crucial resistance level. Nifty will gain upside strength only above 9500 levels.

Market Breadth Nifty

Advances 0 Declines 50

The biggest loser among Nifty 50 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

Nifty March Futures are trading at a discount of 30 points.

For March 26 expiry

Highest open interest Call side is at 12000 ce around 20.08 lakh shares

Highest open interest Put side is at 9000 pe around 15.34 lakh shares

Huge amount of call writing at 8000 ce means 8000 will act as strong resistance level for Nifty

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