Live Market

Thursday, October 14, 2010

Pseudo Rally Failed?

Yesterday the banknifty shoot up from 12500 to 12850 level and the 650+ level we have seen a 'runing gap ups' and during closing the 'exhaustion gap up's seen.The Nifty and Banknifty futures were traded in high premimum when we compare with the spot.The gap's were very wide for banknifty about 100-points wide which we understood the weakness
(The Ground Reality is seen) and pseudo rally . We are very much sure all these gaps will be narrowed and the left over gaps must be filled today.That was proved today all gaps were filled.

Today we went short in the opening in 12880 and covered the same at 12828.When it broke the 800 level we sold again as we expected the ' island of reversal ' and as per our expectation it happened and the market fell from 12800 level to 12560 level.We almost attempt every level sell and cover and out of 7 trades 2 SL were hit. Over all we made good gain.We sold near the day high but covered short so soon as the market many times witnessed false breakdowns.if we would have kept our short from 12880 level to 12600 level we would have made 280 points in one stroke..but considering safety coverd soon.

Now what we can expect Tomorrow?

The 12600 -700 level seems to be a kind of consolidation and side ways zone.The banknifty falling down to 12500 level now brings fresh selling and the bear may over power...till then it is going to be a real tug-of-war between bulls Vs bears.Today the banknifty high was 12888 whis is all time high and nifty made day high 6317 and the all time high was at 6346 and the break out of this level failed and a steep fall of nifty is an indication of a minor correction may possible.I feel the relief rally in banknifty is a failure one.

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