Live Market

Wednesday, July 6, 2011

Banknifty view for 7.7.2011

The banknifty and nifty showed weakness as we stated in our yesterday post.Both these index's today opened in mild gap down and shown weakness there on.The Bn touched a days high of 11444 and fell down to days low of 11281.We sold bn today at 11430 and 50% covered in 360 and balance 50% covered in-11332 level.Again we bought it in 325 and sold the same in 11370 level.So ,the intraday we made a net gain of 110 + points.Today the market gave a kind of indication for intraday trading unlike the last few days market shown a lackluster trade.

We sold Nifty positional short twice in 720+ 680 levels and not yet covered the short.
Intraday we made about 35 points in Nifty.We were mentioned the nifty may have resistance at 668, today it touched a days high of 5667.50.The support we said was 6616 and today nifty made exact low at 617.50 and shot up.The Nifty today was held well between this level where as the banknifty shown clear weakness as it broken down the 350 support and gone to 281 level.This happened due to today weakness in SBI.TheNifty was moved like a snail and on the coming session it may slide down to 555 level.The Bn now has support in 10912 and 11168 level breaking down these level bring down bn to 10800 level.

The banknifty is having selling pressure in 11430 level and the selling pressure is shallow and it could only brought down the price very little.This may be caused due to the FII's inflow.Today the FII's net buy seems very less about 220 crores compare to the past 10 days (Used to buy above 700-900 crores).

Today the hot news is the Textile minister Dayanidhi Maran whose involvement in the spectrum case, the cbi filled a case in SC and the opposition want the PM to drop him.The Murali Deora offered his resignation already...What next?? My crictic says there is a thread on the political front.