Banknifty view for 16.6.2011

The market is just started showing its real coluors..what we have seen is just the tip of an 'iceberg'.The jim rogers says the US is preparing for another recession in 2years.Among the world markets indian market seems to be better as it purely depend on its domestic growth unlike other nation.The current GDP and inflation is disappointing ...yet in a long term view its good.But we need to remember one thing in our market is not completely de-coupled from other market.The commodities prices are out of control and the crude hike really worrying as the on going rapid rise of domestic needs.The people are in power were unable to compensate this deficit...!! there is a way out to find the oil&natural gas in India.But will it possible...i don't thing so as the private oil explorers like reliance and other companies are taking all our resources to their favor.The recent CAG reports shows the Govt. Made loss about 40,0000 crores in the K.G.basin that was the loss made as the ministry was favored all its norms that favor to reliance...Just now we are talking about the 2-G scam and that 1.8 thousand crores is not yet recovered not even a 1000 rupees now the other scam is discovered..Where it lead no doubt we are droned so much.The reliance will surly pull down the index soon.

We were cautioned in our previous post do not remain long in NIFTY and Banknifty when it was trading in 5530,10840 levels respectively.Today the nifty touched day high of 5505 and fell down to days low of 5438.The bn touched high of 10835 and gone to the low of 10607.The Bn opening punch was in 835 we have not seen it stood up there...all we saw is 81o level .

Today we made good gain in both the index's.We done 4 trades in banknifty and made nearly 90 points.The positinal short holders made about 200 points.

We expect the market may bounce little up and again it require fresh selling pressure and it slide down to 5408 and 10560 level.Positionally the bn will slide down to 10440 level.