Banknifty Analysis 1.4.2020

Banknifty 5 Min Intraday Chart 1.4.2020
Banknifty 5 Min Intraday Chart 1.4.2020

Open 19122 High 19154 Low 18042 Close 18208

Banknifty opened with a gap down of 22 points at 19122 levels and touched a high of 19154 on the first 5 minute candle. Banknifty faced heavy selling pressure throughout the morning session and fell 977 points from opening levels to touch a day low level of 18148 at around 11.10 am. The down trend was so strong that price never closed above 21 ema on a 5 minute timeframe.

Banknifty gave a small pullback towards 18400 in the afternoon session but could not move any higher. Banknifty fell 353 points from 18400 levels to touch a new day low level of 18042 at around 2.05 pm.

Banknifty closed the day at 18208 down 935 points or 4.89 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 1 Declines 11

The biggest loser among Banknifty index was Kotak Bank down 8.68 percent  and highest gainer was Federal Bank up 0.37 percent.

FNO Data Analysis

Banknifty April Futures are trading at a discount of 85 points.

For April 9 expiry

Highest open interest Call side is at 20000 ce around 1.53 lakh shares

Highest open interest Put side is at 18000 pe around 1.27 lakh shares

Huge amount of call writing at 19500 ce means 19500 will act as strong resistnace level for Banknifty

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