The banknifty our pre-market view did'nt happen.We were expecting a mild gap down opening where as the banknifty opened in a wide gap up @10974.The banknifty was touched 11015 during the opening 15 mins high and fell down.In the mid-session when the IIP data flashed in news and some news about raids in SBI head office etc made banknifty &Nifty to fall sharply. The banknifty came down to 850 level. Latter on the banknifty agin fell down and touched a new day's low at 10725 and made a 'U" turn and touched a days high of 11184 and lastly traded in 11147.10.The difference between low to high was 459 points.The market today was highly eratic.it broken down all days lows and also broke out all days high.
We made almost 8 attempts today in banknifty and failed in 3 attempts.We also covered today all our positinal short, when it unexpectedly touched a low.We went short in 10945 level and holding minimum shorts.we may cover it at 10800 level.We tried shorts in higher levels to rise our selling avg that only made us to attempt more trades today and overall could rise about 60-points gain.
The banknifty is made a high inspite of the weak IIP Data. It fell down very fast and touched a days new low 10725 in no time. when it crossed the 10960 level the panic short covering only took it up to 11100+ levels. As we see there is not much strength to move this high other then this reasons.Our expectation is the banknifty tomorrow trade in side ways and consolidate more for few more sessions.The nifty we wrote in our pre-view, one can consider going long in days low.Today nifty touched the days low of 5711.65 and touched a days high of 5885(we wrote go long near 5700 sl@5685.One would have made about 180 points in Nifty today)