Banknifty View for 17.6.2011

Many of our readers stunned after reading our yesterday's post.Mainly our seed clients were shown their fear as they invested money in our SEED Tips.We are here to reflect the market reality time to time.When a investor invest money in Blue chip company's they need to worry much about.

All our SEED clients need not to worry we are invested in value based stocks.if the market fall down our scrip's done the reverse.For ex.- The TTK prestige is bullish right from Rs.600 to 2800 still it is moving up only.Where us if you buy a stock like Reliance based on Tv news/rumors that must be avoided.Every one knew in the market the Reliance is struggle to move beyond Rs.1000.Not only that it is a heavy weighted stock that pull down the index futures too.Long term investor actually be ready anytime to buy a value based stock in market when market fall.It is a boon time for investors when market fall drastically they can bottom fish with our guidance.

i wish every one who read this post,must read our yesterdays post.too.Today the market gave a shock to many , who were long in banknifty and Nifty index future's/Both these index fell down sharply and didn't give a chance.The Bn opened gap down about 80 points and nifty about 150 points.The nifty opened in 5406.We were cautioning many time do not remain long.

Today was a jackpot day for all our clients as we could made 7 trade and made 200 +points in intraday itself that too without single stop loss hit.We have devised a new strategy and made so many sell right from 10555 to720 and won.All our experience over 8 years in stock market made this possible even sailing smooth in a storm.

In our view the market from yesterday shown a clear direction on the down side.Now nifty may touch 5369 level.if break down this 369 market may free fall once again.The bulls have hope only above 5466 and beyond.Down to this level the market slide.The Bn today touched 10535 level we asked all our positional clients to initiate sell right from 10900 level and gave a proposed target of 10440 another 100 points left to achive this.Today bn moved up erratically from 610 to 745 level but unable to sustain and during closing it fell back to 10570 level that shows the Bn is not strong/stable to sustain in higher level.The RBI rate hike seems a burden for corporates and mainly the reality industry have direct '-' ive impact.On the other hand the domestic auto and allied industry growth will be affected.At present india is one of the top most consumers as far as Auto&telecom sectors.Many corporate's now seems to worry to un-burden their corporate taxes.

This repo rate hike actually favor the banks and strengthen its fundamental.The fiscal deficit is still not in a good state although the food inflation shown marginal appreciation...but the fuel price up&up is going to wipe all these and put as aside.we need more expertise in our economy to resolve all.

Banknifty view for 16.6.2011

The market is just started showing its real coluors..what we have seen is just the tip of an 'iceberg'.The jim rogers says the US is preparing for another recession in 2years.Among the world markets indian market seems to be better as it purely depend on its domestic growth unlike other nation.The current GDP and inflation is disappointing ...yet in a long term view its good.But we need to remember one thing in our market is not completely de-coupled from other market.The commodities prices are out of control and the crude hike really worrying as the on going rapid rise of domestic needs.The people are in power were unable to compensate this deficit...!! there is a way out to find the oil&natural gas in India.But will it possible...i don't thing so as the private oil explorers like reliance and other companies are taking all our resources to their favor.The recent CAG reports shows the Govt. Made loss about 40,0000 crores in the K.G.basin that was the loss made as the ministry was favored all its norms that favor to reliance...Just now we are talking about the 2-G scam and that 1.8 thousand crores is not yet recovered not even a 1000 rupees now the other scam is discovered..Where it lead no doubt we are droned so much.The reliance will surly pull down the index soon.

We were cautioned in our previous post do not remain long in NIFTY and Banknifty when it was trading in 5530,10840 levels respectively.Today the nifty touched day high of 5505 and fell down to days low of 5438.The bn touched high of 10835 and gone to the low of 10607.The Bn opening punch was in 835 we have not seen it stood up there...all we saw is 81o level .

Today we made good gain in both the index's.We done 4 trades in banknifty and made nearly 90 points.The positinal short holders made about 200 points.

We expect the market may bounce little up and again it require fresh selling pressure and it slide down to 5408 and 10560 level.Positionally the bn will slide down to 10440 level.

Banknify view for 14.6.2011

The Banknifty opened weak and slides to days low of 10602 and shoot up sharply to 10700 level and touched a day high of 10765 level.The nifty also made a low of 5437 and touched a days high of 5511 level.

This up move was expect as both these index are filled the gap.We would like to insist the nifty and banknifty gone up in sideway market it has done a exhaustive run up and the BN&Nifty is still seems weak as the selling pressure in nifty was too heavy today.The Nifty has so many hurdles in 520 and 545 area so the upside move is limited we need to observe few days as the trend now may be side ways.

We made good gain in Banknifty intraday about 80 points and STBT shot also covered where we made around 60 points in addition to todays trading.

We would not suggest fresh long at this level one can consider short with SAR-5540