Live Market

Monday, July 25, 2011

Banknifty Future View for 26.07.2011

The banknifty future Friday made a days low of 11110 and closed in 11310 and today it manage to open in gap down at 11297 and touched a days low of 11240 and it stayed almost 4-hours in a sideways range below 300 and certainly spiked above 200 DMA and gone to the days high of 11445 and lastly traded in 406 level.Many time the banknifty witness/attracted the selling pressure at this level near 11440 level and fell down back to 11100-200 level.This is what we expect on the coming days.This hike is also caused due to the F&O closing on 28.7.2011.We need to consider the tomorrow the RBi policy of hiking another Repo Rate...!! At this scenario , as usual we will not advise to go fresh Longs.The Greece and US debt crisis may accelerate further.

The Nifty manage to cross over the 5655 level ,but have not crossed the 200DMA.If it fall by any chance below 50DMA another fall or a range bound market between 5410-700 may repeat once again.Above 5740 the Nifty may attract fresh/panic buying.Today the market shown a running gaps between 648-700 level.One can aggressively go short in Nifty with strict Stop Loss at 5740.The target we can expect are 5630/610 and 5578 level.

At this point of time the banking stocks is better to avoid /remaining in long.The .25 Bps rate hike will have minor -impact on banks...but if the hike is above .25Bps or .50BPS may have great '- 'ive'impact on banking sectors.

The Reliance results may have the post impact reaction on tomorrow market and tomorrow it can slide down as we have seen in the past before result the stocks shoot up and after the result,even if it is good it used fall..So watch out tomorrow RIL.The profit gone up to +17%.

Now The banknifty may slide down to 11260 level below it can take support near 10970.Now it entered in a strong resistances zone above 460 if it sustain for 2 days the context may change.So lets observe till f&o closing then we can take position or just skip trading in July and jump to Aug future..That is an ideal choice.