RBI takes gaint steps to combat Coronavirus – Nifty Analysis 27.3.2020

Nifty 5 Min Intraday Chart 27.3.2020
Nifty 5 Min Intraday Chart 27.3.2020

Open 8949 High 9038 Low 8522 Close 8660

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 

Nifty opened with a huge gap up of 308 points at 8949 levels and touched a high of 9038 on the fourth 5 minute candle which also turned out to be the highest point of the day. As expected Nifty faced heavy resistance at 9000 levels and fell around 500 points from day high levels to touch a day low level of a low of 8541 at around 11.15 am.The fall came after the RBI press conference at 10 am.

After a bit of consolidation around 8700 levels touched a new day low of 8522 at around 1.25 pm.Thankfully Nifty took support at crucial support levels of 8500 and rallied 209 points from day low levels to touch a high of 8839 at around 2.25 pm.

Nifty could not cross highs of 8840 in the last hour of trading session and closed the day at 8660 up 18 points or 0.22 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. But as Nifty is not breaching the recent low levels of 7525 levels the level of 7500 can be treated as a temporary bottom. 8000-8500 levels will act as crucial support levels for Nifty. 9000 levels will act as a stiff resistance level.Nifty will gain upside strength only above 9500 levels.

Market Breadth Nifty

Advances 23 Declines 27 

The highest gainer among Nifty 50 index was Coal India up 6.57 percent and biggest loser was Hero Moto Corp down 7.93 percent.

FNO Data Analysis

Nifty April Futures are trading at a discount of 50 points.

For April 1 expiry

Highest open interest Call side is at 10000 ce around 13.52 lakh shares

Highest open interest Put side is at 8000 pe around 10.06 lakh shares

Huge amount of call writing at 10000 ce means 10000 will act as strong resistance level for Nifty

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