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Wednesday, September 8, 2010

Banknifty May Fall!!


The banknifty today touched the day high of 11240 and the day low was 11074.The opening we sold near 11110 and covered the same near 11080 and we bought it again near 11155 and sold the same 50% near 199 and rest at 11236. During the closing we sold Banknifty at 11205 and thought of carring the short for 'STBT', but when it fall to 170 level we covered at 175 after covering it fell further down to 11140 level. The closing was weak in banknifty. The tomorrow banknifty may weaken further and any down move down to 10970 will bring fresh selling and it may reverse the on going rally in banknifty.
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Today was one of the great days for us , as far as the profit is concerned.We bought almost banknifty at the days low and sold the same at the days high.We gave a STBT call in Icici Bank yesterday at 1038 and covered the same at 1025 level today morning.We also gave sell call in Kotakbank at 850 and covered the same at 844.These calls we give free for our banknifty paid clients.
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The Nifty seems to find hurdle in 5620 level. It fall from there twice,the other day it went to 612 and fell,today too it fell from 620 level to 580. I think, if the nifty break down 560 level may bring fresh selling in nifty...one can go positional short in nifty with the sl of 5624.
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What Do We Expect Tomorrow?
The Banknifty went to the 11240 level and for no reason it fell to 140 level during the closing. A 100 points fall in short time duration was indicating the base is not so strong/ solid . We expect a weakness in banknifty tomorrow. The icici bank was weak today,if the same continue tomorrow the Bn will fall down.
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On the other hand the banks merger with Sbi news made it to zoom up about 50 points in no time and still the banknifty was failed to touch the new high (That would have been easily reachable). There are some hot talk about the banks D/E Ratio( Debt Ratio Analysis) among the taders we need to study it further.Now we have the understanding that,the banks may fall any time.
While writing this post the Asian market is in red and the US market we have to watch out tonight for tomorrow opening prediction.
I wish you to avoid fresh longs inNifty&Banknifty at the current level.

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