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Thursday, July 29, 2010

BANKNIFTY Vs NIFTY


The Nifty start showing weakness from the last week onwards and this week its gone down to 5400 level with the -ive Divergence.it is still on.Where us the banknifty seems to be strong enough to sustain above 10000 level and not willing to give up its status quo.


Few weeks back i have posted an article....' Traders sell baknifty and buy nifty ' ...These two index usually follows one another but from the july month onwards they are conflicting with one another.Even today the nifty is going down and was in selling mode , where as the banknifty was going up and was in buy mode.The Banknifty july future gone to new high 10198 level. The Aug month future went up to 10170 level. The composites of banknifty like Hdfc,Axis Bank,Icici Bank,SBI etc are also in the nifty composites and these stocks shown some weakness and still the banknifty future went up...
What could be the cause for this rise?
The huge short roll over from july to augest month is one of the reasons and the other strange reasons must be the nifty future and banknifty future seems to be hedged with one another...The new hedging of index to index?? what a Strange idea it is!!. Thats why when one is moving up,the other is falling..
The market is some what compressed from its both sides by the bulls and bears.it is unable to move up or down and like a snail moving side ways and some un-expected reversal was seen when it was about to fall down from its citical support levels..it was seen last week and even today it rised sharply from 10025 to 10150 levels.


Now the Banknifty will be showing the rising wedge in its bearishness..it will be weak only down to 10020 level and the tomorrow or coming days the closing will be down to this level will bring down banknifty upto 9640 levels.The nifty has to support this by going down to 5360 levels.

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