We wrote in our yesterday post if Sbi,icici &Reliance shows weakness the banknifty may come down...But,inspite of these scripts fell down ( Reliance was in years low today) the banknifty is sustained above 10740 level and during the end it went up to 10810 level.
The nifty was weak and unable to sustain above the 5440 level and closed down to 200 SMA.Now nifty has strong support at 5354 level. About 2 months the nifty was unable to move up beyond 5500 levels and on the other hand the banknifty reached to the life time high what are the cause's for this up move? The banks are showing great strength based on a very good results.Our national banks are firm when we compare with the global banks.In 2007 & 08 how the reality zoomed, now the banks are doing the same.The modernaization of our banks are attractive and proved to be an effective cost cutting that add additional margins to our banks.The Axis bank and Sbi are the few examples for this.
Today we made about 80 points profits in intraday trading. we bought in the opening near the day's low i.e 10700 level and sold it near 50 and made few swing trade between 10735 to 790 and made a net of 80 points gain.We also advise not to go fresh positional long at this level and do all your intraday trade with strict SL. The banknifty is now said to be the benchmark of our indian market and hold our market from falling. when the other markets fell in the recent past our market did'nt react is based on this banks strength.
What we can expect on 18.08.2010?
The banknifty closed today very strong and the nifty was closed weak.The banknifty was in sideways for the last 3 days and it is taking support in the 400ema trend line,as long as it sustain above to it will be strong and it may now claim up another 100-200 points is not a big deal.The Euro zone as of now up (while writing this post). The FTSE is in 0.90%up..we need to see the 'US' markets tonight if all these global cue's are up our market may open gap up tomorrow.If banknifty open down to 10760 avoid long.The banknifty now in over bought zone.