Today, i gave a pre-market view to all my clients at 8.30am...In that , i have mentioned today market will open in gap down and trade in range bound within 5370-5430 (future) and the market does exactly the same.The nifty low was 5370 and high was 5422.The banknifty were pulled up by banks mainly it was lead by SBI,Bank of Baroda,Hdfc etc.We all are longing to see the banknifty coming down..every day i recive so many query's about the bank nifty and most of the people are asking me will the banknifty come down? My answer to all of them are just be cool it will.The yesterday post i wrote the index hedging nifty vs banknifty and today too we have observed the same. The nifty was in sell mode and failed in its upmove...all it can stretch out to 5415 from 380 levels and went down to 370 level by broke down the earlier day low.Where as the banknifty was shown great strength and rose upto 10194.00 level.But during the closing it came down to 10112 level and close weak.
The consistent move up is caused the huge FII's buy > FII inflow in July 2010 totaled Rs 12,179 crore.The state bank of india is going up day by day and it reached to 2520 + levels.Now what will happen in monday? The monday market may open in gap down as per todays closing.we also need to consider the global cue's tonight.Now the nifty has a major support@5355 level and breaking down will lead market to 5210 level.The banknifty technically fulfiled all its up move and shown its strength enough now it has to move down to 10000 level for a positional sell.