Live Market

Tuesday, July 20, 2010

Banknifty poised for a reversal?

I wrote yesterday about the 'De-coupled Market' and mentioned no market can stand(with stand) alone for a long run.Every market has to Re-couple itself with the world cue's and it has to cycle along with the ongoing trend of the world.Today the banknifty shown a great weakness after a long jumped like a tiger from one high to many gap up's and reached to the crown.The many TA's foreseen it will touch 10500 level.Where as we were holding our shorts and today we have sold more than 4 times and bought and roughly made 100 points + after ten days.Since last ten days the banknifty was traded in a narrow range from 70 points to 100 points.Today it was different and seen some volatality.

The banknifty move down to 200 MA & 400 EMA and locked down to it during the market closing.As per our tech view's the banknifty now poised to a reversal.If the market open tomorrow gap down,down to 9880 a big fall is on card that will go deep down to 9640 levels.If tomorrow the market open above 9940+ another choppy day one can witness.

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