Banknifty Analysis 18.5.2020

Banknifty 5 Min Intraday Chart 18.5.2020
Banknifty 5 Min Intraday Chart 18.5.2020

Open 18795 High 18795 Low 17514 Close 17573

Banknifty opened with a gap down of 38 points at 18795 levels which also turned out to be the highest point of the day. Banknifty faced heavy selling pressure throughout the morning session and fell 1288 points from morning high levels to touch a day low level of 17514 at around 11.25 am.This fall was mainly due to coronavirus fears and stimulus package not living up to the expectations.

Banknifty took support at important support levels of 17500 levels and recovered 306 points from day low levels to touch a high of 17825 at around 1.55 pm.

Banknifty closed the day at 17573 down 1260 points or 6.69 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.17000-17500 will act as important support levels while 19500 – 20000 levels will act as a stiff resistance level.

Market Breadth Banknifty

Advances 0 Declines 12

The biggest loser among Banknifty index was Indusind Bank up 9.64 percent.

FNO Data Analysis

Banknifty May Futures are trading at a premium of 16 points.

For May 14 expiry

Highest open interest Call side is at 19500 ce around 6.46 lakh shares

Highest open interest Put side is at 17000 pe around 3.17 lakh shares

Huge amount of call writing at 18500 ce means 18500 will act as strong support level for Banknifty

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