The Gap down opening today did'nt create the impact of panic selling in bank nifty. Today it is sustained well in 10670 -700 level and during the closing it hits the day high 10750 and marked 767 and was not able to stay and fall 30 points and closed in a possitive note.The day low was 10643 ...The 10633 would have brought fresh selling but today, some how it sustained above and we have seen good consolidation near 10670 level. The banknifty last 3 trading days held well in a range of 10650 to 860 level and considering todays consolidation it may take a jump upto 10930 level.
The DII's selling volume is rised today. The nifty today marked a low of 5365 levels and during closing it shoot up 5410 + and still the closing & day low's is lower than yesterdays that is an symptom of further weakness.The Reliance fall is great burden to nifty,it has to fight well to sustain the 5400 level.On the other hand we do expect a dead cat bounce in Reliance..
What Do We Expect Tomorrow?
Tomorrow we expect a Gap Up opening in banknifty.If it open above 10840 by chance it may surge it further to 920 level or if open near 10800 a selling will be higher and may slide down to 700 and sustain side ways there on.The BN trend now is not aggressive as it used to be. A fall down to 10630 or a move above 10940 only can change its behaviour.
Avoid fresh longs.