Nifty falls below 9000 levels – Nifty Analysis 18.5.2020

Nifty 5 Min Intraday Chart 18.5.2020
Nifty 5 Min Intraday Chart 18.5.2020

Open 9158 High 9158 Low 8806 Close 8823

Nifty opened with a gap up of 22 points at 9158 levels which also turned out to be the highest point of the day. Nifty faced heavy selling pressure throughout the morning session and fell 333 points from monring high levels to touch a day low level of 8825 at around 11.25 am.This fall was mainly due to coronavirus fears and stimulus package not living up to the expectations.

Nifty took support at important support levels of 8800-8825 levels and recovered 100 points from day low levels to touch a high of 8925 at around 1.55 pm.Nifty again fell 120 points from 8925 levels to touch a new day low level of 8806.

Nifty closed the day at 8823 down 313 points or 3.23 percent. 

Nifty is quite volatile these days. Trading these kinds of volatile markets is difficult.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. Nifty has broken its range of 9500-9000 levels on the downside. Nifty is now a sell on rise candidate. 8500 will act as a crucial support level for Nifty whereas 9000 levels will act as huge resistance level. Nifty will gain strength on the upside only above 9300 levels.

Market Breadth Nifty

Advances 6 Declines 44

The highest gainer among Nifty 50 index was Cipla up 5.51 percent and biggest loser was Indus Ind Bank down 9.64 percent. 

FNO Data Analysis

Nifty April Futures are trading at a premium of 4 points.

For May 21 expiry

Highest open interest Call side is at 9500 ce around 21.3 lakh shares

Highest open interest Put side is at 8500 pe around 11.9 lakh shares

Huge amount of call writing at 9000 ce means 9000 will act as strong resistance level for Nifty

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