Live Market

Tuesday, July 26, 2011

Banknifty View for 27.07.2011

We wrote in our yesterday preview about market today..This prediction almost proved right today...for your view we post the same here.

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.

Now what to expect from market?

The banknifty today took support in 11057 and it may move side ways to 11240 level and consolidate again.The nifty can open in gap up tomorrow near 5620 or it can try to claim 640 level...As the Option segment+ hedging may make this hike.The coming Thursday the f&o closing so better trade in Aug month.

Today we asked all our clients to place buy for banknifty for our short at 11183 when market was trading near 11420..Many clients wondered/asked me do u expect great fall? i said yes. from 11400 in no time it fell down to 11057 fell down beyond our expectation.One has to be alert and always inculcate a habit of placing orders soon after a position is taken.

'The market is capable of beating anyone!! however they are sound in technicals..So trade wisely and make a trading plan. Without any plan dont ever trade.'