Nifty is back above 9000 levels – Nifty Analysis 20.5.2020

Nifty 5 Min Intraday Chart 20.5.2020
Nifty 5 Min Intraday Chart 20.5.2020

Open 8889 High 9093 Low 8875 Close 9066

Nifty opened with a gap up of 10 points at 8889 levels and touched a low of 8875 on the first 5 minute candle which also tuned out to be the lowest point of the day.Nifty rallied another 29 points from opening levels to touch a day high level of 9018 at around 10 am.

Nifty consolidated between 8926-8972 levels throughout the afternoon session. Nifty broke out of the consolidation zone on the upside in the late afternoon session and rallied 123 points from 8970 levels to touch a new day high level of 9093 just before the closing bell.

Nifty closed the day at 9066 up 187 points or 2.11 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.8800-9000 levels will act as a crucial support zone for the index whereas 9200-9300 will act as heavy resistance areas.A big bullish breakout will occur only above 9500 levels.

Market Breadth Nifty

Advances 42 Declines 8

The highest gainer among Nifty 50 index was Shree Cements up 6.24 percent and biggest loser was Infratel down 6.99 percent. 

FNO Data Analysis

Nifty April Futures are trading at a premium of 20 points.

For May 21 expiry

Highest open interest Call side is at 9300 ce around 16.26 lakh shares

Highest open interest Put side is at 8800 pe around 18.34 lakh shares

Huge amount of put writing at 9000 pe means 9000 will act as strong support level for Nifty

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