Banknifty Analysis 22.5.2020

Banknifty 5 Min Intraday Chart 22.5.2020
Banknifty 5 Min Intraday Chart 22.5.2020

RBI announced repo & reverse repo rate cut by 40 bps each. RBI expects FY21 GDP growth to be in negative territory. RBI also announced an extension of moratorium by additional 3 months, till August-end. The Governor also announced other measures in his press conference

Open 17554 High 17952 Low 17105 Close 17278

Banknifty opened with a gap down of 180 points at 17554 levels and touched a low of 17440 on the first 5 minute candle. Banknifty rallied 407 points from opening levels to touch a day high level of 17952 at around 10 am.

The market seemed to be disappointed by the measures and commentary of RBI Governor as Banknifty fell 840 points from day high levels to touch a day low level of 17106 at around 1.25 pm.Banknifty recovered 255 points from day low levels in the late afternoon session to close the day at 17278 down 456 points or 2.57 percent.

Banknifty closed the day at 17278 down 456 points or 2.57 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 will act as important support levels while 18500 – 19000 levels will act as a stiff resistance level.

Market Breadth Banknifty

Advances 2 Declines 9 Unchanged 1

The biggest gainer among Banknifty index was Kotak Bank up 1.28 percent and biggest loser was Axis Bank down 5.21 percent.

FNO Data Analysis

Banknifty May Futures are trading at a premium of 8 points.

For May 28 expiry

Highest open interest Call side is at 18000 ce around 8.23 lakh shares

Highest open interest Put side is at 17000 pe around 4.37 lakh shares

Huge amount of call writing at 18000 ce means 18000 will act as strong resistance level for Banknifty

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