Live Market

Monday, August 2, 2010

BANKNIFTY FUTURE Where it is heading now?

The banknifty future friday closed near 10130 level and today it opened in gap up near 10199 and showed (punched) a low at-10171 and that happened to be a day's low and it rose to 10240 levels in few minutes and 280 levels it stood for a longer time and went to 320. During the market closing it moved up so quickly to 10398 levels.The low to high difference is about 250 points.After a long time the banknifty future shown high volatality today.
What made it to reach 10400 levels?
The Sbi and icici bank and other banks were shown great strength today.Especially the SBI went to the new high Rs.2600.00.The nifty trend last week was in correction mode and today it struggled to cross over 5420 level and finally during the closing the Sbi took charge and lifted both the index's up and nifty breached the 440 level that shows the suspended correction.
Where the market is heading now?
Today, all the banks in the banknifty composite was in bull mode and almost all other banks are also were up and took up the nifty and banknifty to the higher range.The nifty now has minor hurdle at 5460 level.Tomorrow we have to see this level, if nifty sustain above 420 and crossed the 460 levels the positional short holders have to be alert to reverse the position.
The Reliance industries did'nt participated today, and it shows some symptoms of weakness and it is also potential enough to pull down the nifty below 5420 level.The other possibilities is, if the Reliance act bullish tomorrow it may lead the rally.
The Banknifty today crossed over the important trend line near 10300 and it is usuall that,the market will reverse when it hits the trend line.But today banknifty showed unusual bullishness and reached beyond and touched a new high 10399* (The spot was in 50+ points premium).The banking stocks are still strong and may take it to further high's. If the Sbi/icici bank or Reliance may turn weak means there are chances for a reversal in banknifty.Now the banknifty looks firm above 10270 level and down to it one can go short with appropriate SL. The 10098 and down to it will make a break down/correction in banknifty.We must look out the move of SBI & Reliance tomorrow to decide the positional trade.

Now, i feel the market is witnessing a critical zone and difficult to predict positional longs/ short. so better trade with sl or sqaure all your positions in intraday.

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