Selling pressure returns in Nifty – Nifty Analysis 1.4.2020

Nifty 5 Min Intraday Chart 1.4.2020
Nifty 5 Min Intraday Chart 1.4.2020

Open 8584 High 8588 Low 8198 Close 8253

Nifty opened with a gap down of 13 points at 8584 levels and touched a high of 8588 on the first 5 minute candle. Nifty faced heavy selling pressure throughout the morning session and fell 316 points from opening levels to touch a day low level of 8273 at around 11.10 am. The down trend was so strong that price never closed above 21 ema on a 5 minute timeframe.

Nifty gave a small pullback towards 8327 in the afternoon session but could not move any higher. Nifty fell 130 points from 8327 levels to touch a new day low level of 8198 at around 2.05 pm.

Nifty closed the day at 8253 down 343 points or 4 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. 8000-8200 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 4 Declines 46 

The highest gainer among Nifty 50 index was Hero Moto Corp up 2.48 percent and biggest loser was Tech Mahindra down 9.4 percent.

FNO Data Analysis

Nifty April Futures are trading at a premium of 7 points.

For April 1 expiry

Highest open interest Call side is at 9000 ce around 9.22 lakh shares

Highest open interest Put side is at 8000 pe around 9.3 lakh shares

Huge amount of call writing at 8500 ce means 8500 will act as strong support level for Nifty

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