Why This Congestion in market?

The 'Gap-Up Opening' today did'nt bring the activeness in the market.The market was very much congested today from its opening to the closing. The banknifty future opened in 10950 and came down to 927 that remains a day's low and slowely went near 960 and stagnated for a longer time and it marked 988 as days high but not able to saty over even 2 mins and fall back to 950 levels.

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Why this congestion?

The low to high is only 51 points, it was caged in a narrow zone. A kind of maturity was seen.it was unable to claim up or fall down the buying and selling pressure from both ends made a day of congestion.The icici and axis banks are shown strength,even the Sbi is not that much weak it would have gone up...but the traders seems to cut short their position by booking profits for a small up and down moves.

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As i stated in my pre-market view the banknifty remain in sideways and shown choppyness.The day trading was really boring because of this choppiness. The Nifty shown weakness and unable to sustain the 5500 level during closing it came down to 480 levels.

What do we expect tomorrow?

There is a chance for gap down opening tomorrow and the banknifty may trade in side ways. A move down to 10830 will bring activeness and one can see good volatality in intraday. The 10900+ levels will not attract fresh buying...between 860 to 980 range will remain choppy or less volatile a firm move up or down is only good for active day traders.

I will not advise now , you to initiate fresh longs at this levels.

Will This upmove continue?

The Banknifty is fullfiled our expectation as we wrote in our yesterdays's pre-market prdiction.Here i am attaching the same for your attention.

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"Today it is sustained well in 10670 -700 level and during the closing it hits the day high 10750 and marked 767 and was not able to stay and fall 30 points and closed in a possitive note.The day low was 10643 ...The 10633 would have brought fresh selling but today, some how it sustained above and we have seen good consolidation near 10670 level. The banknifty last 3 trading days held well in a range of 10650 to 860 level and considering todays consolidation it may take a jump upto 10930 level. "
"Tomorrow we expect a Gap Up opening in banknifty.If it open above 10840 by chance it may surge it further to 920 level "

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Today the banknifty future opened in >'gap up' near 10780 and surged to 802 and slide down to 758 level and that was the day low.In the the opening we initiated a long near 770 and placed a sell at 834,but when it fall down to 760 in no time we made a double sell and it came down to 758 and rose up to 840 then it fell down to 765 level that made great mess and the day was very tricky as far as banknifty is concerned. it hits all SL here and there.The sl eat out day.. The BN slowely shoot up again to 840 levels...there its sustained well and went up to 907 during the closing.(our pre-expectation was 920)

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The nifty was very neat and fairly done all our expectation/prediction at last it went to 5488 high..we have given in our free tips stream a buy near 410 and gave a target of 484 and that was attained.The icici bank touched 1000 mark and took charge of the banknifty upmove.

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What do we expect Tomorrow?

We are expecting a mild gap down to flat opening tomorrow and if move above & sustain 10940 levels will be strong and the trend may change to mild bullishnes and reach to 980 level.The 10k level it may find hurdle so, it may move to side ways in 940+ levels and a few more days consolidation may take it further up.We also need to watch out the world cue's for this and our market is now(re) connected with the trend of the world market.

is it a consolitation phase to move Up?

The Gap down opening today did'nt create the impact of panic selling in bank nifty. Today it is sustained well in 10670 -700 level and during the closing it hits the day high 10750 and marked 767 and was not able to stay and fall 30 points and closed in a possitive note.The day low was 10643 ...The 10633 would have brought fresh selling but today, some how it sustained above and we have seen good consolidation near 10670 level. The banknifty last 3 trading days held well in a range of 10650 to 860 level and considering todays consolidation it may take a jump upto 10930 level.

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The DII's selling volume is rised today. The nifty today marked a low of 5365 levels and during closing it shoot up 5410 + and still the closing & day low's is lower than yesterdays that is an symptom of further weakness.The Reliance fall is great burden to nifty,it has to fight well to sustain the 5400 level.On the other hand we do expect a dead cat bounce in Reliance..

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What Do We Expect Tomorrow?

Tomorrow we expect a Gap Up opening in banknifty.If it open above 10840 by chance it may surge it further to 920 level or if open near 10800 a selling will be higher and may slide down to 700 and sustain side ways there on.The BN trend now is not aggressive as it used to be. A fall down to 10630 or a move above 10940 only can change its behaviour.

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Avoid fresh longs.