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Thursday, July 7, 2011

Banknifty View for 8.7.2011

Today the Nifty& Banknifty crossed the 200DMA together.The BN were able to cross the 200 DMA the other day but NIFTY was not and today both were jumped up beyond 200DMA during market closing.The Banknifty opened in gap down at 11335 from yesterdays closing11317 and went down to the days low.We sold Bn in opening around 310 and covered in near 270 exactly near days low we were expecting the target of 262 but due to the Nifty strength we covered short. We also covered Nifty short near 5650 that was sold near 5680&710 level and when nifty crossed the hurdle 5668 we bought Nifty and sold the same in 720 level.After we sold the Nifty crossed 200DMA but we skipped fresh longs and made our position nil.

We made 3 attempts in Bn and 2 was successful and 3rd attempt of short near 420 SAR was triggered and we sold one long near 492 and remaining one long we just keeping as today both these index's jumped&closed above 200 DMA.Not just that the 'NSE ADVANCES : 986;NSE DECLINES : 420' this Ratio also seems to be good.

The Tomorrow if banknifty go down below 11388 the weakness may prevail and nifty seems to have strong support in 5616 many days this support held well and the nifty made good consolidation and that only made nifty to jump up from days low 641 to 745 level within a day.Now the nifty has minour support in 5672 level.

We need to observe the follow up price action/range to remain in long in Nifty because it just crossed the 6700 level after a great struggle.So we just kept aside our self from fresh long...once a convincing follow ups is seen than we may take positional or it is better to do intraday trading.