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Wednesday, August 18, 2010

Banknifty Moving up towards 11,000 mark?

The banknifty today fell down to the day's low >10735 after opening near 10800 and in the after noon session, just before closing it rose aggressively and went up to 10925..a new life time high of banknifty future.The volatality was good today.From the day low to high was 210 points.
The banknifty was about to break down near 10740 level and stand still there for a longer time and every one out there thought that a free fall on card..The technical parameters also was in favour of it. The majority banks of this index was weak including sbi,icici etc.but it played a trick around and fooled many traders to made/attempt a sell and hit all their SL -that was placed any where . if any one would have sold without SL is was such a violent move!! ...and unexpected move up of about 200 points.
In my yesterday post i wrote the 100 to 200 points is not a big deal for banknifty.The closing was very strong today and the banknifty now has the strength to touch 11,150 levels.Not only this the nifty now seems to be strong it came down to 5418 and went to 5493 level, less than 25 mins time was acted like a sleeping lion that was awaken all of certain.
On the other hand the Reliance went down to the year low 960,which is one of the heavy weightage stock of the Nifty Index .The SBI,Icici were also in corrective phase..That really rise the eye brows of many, how the banknifty can swim against the flow and reached to the pinnacle? I have no answers and there seems to be no logic that can work in market!!
Now the banknifty is weak below 10730 and a fall down to 10660 only can reverse the trend from bull to bear.I advise not to initiate fresh longs and do all your intraday trading with strict SL.
Wish you a happy trading.

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