Banknifty Moving up towards 11,000 mark?

The banknifty today fell down to the day's low >10735 after opening near 10800 and in the after noon session, just before closing it rose aggressively and went up to 10925..a new life time high of banknifty future.The volatality was good today.From the day low to high was 210 points.

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The banknifty was about to break down near 10740 level and stand still there for a longer time and every one out there thought that a free fall on card..The technical parameters also was in favour of it. The majority banks of this index was weak including sbi,icici etc.but it played a trick around and fooled many traders to made/attempt a sell and hit all their SL -that was placed any where . if any one would have sold without SL is gone...it was such a violent move!! ...and unexpected move up of about 200 points.

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In my yesterday post i wrote the 100 to 200 points is not a big deal for banknifty.The closing was very strong today and the banknifty now has the strength to touch 11,150 levels.Not only this the nifty now seems to be strong it came down to 5418 and went to 5493 level, less than 25 mins time duration...it was acted like a sleeping lion that was awaken all of certain.

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On the other hand the Reliance went down to the year low 960,which is one of the heavy weightage stock of the Nifty Index .The SBI,Icici were also in corrective phase..That really rise the eye brows of many, how the banknifty can swim against the flow and reached to the pinnacle? I have no answers and there seems to be no logic that can work in market!!

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Now the banknifty is weak below 10730 and a fall down to 10660 only can reverse the trend from bull to bear.I advise not to initiate fresh longs and do all your intraday trading with strict SL.

Wish you a happy trading.

What are the cause for the continious uptrend of Banknifty?

Banknifty future is consistently moving and cross over high after high's and today its gone to 10810 life time high.The banknifty started claimping up from july 2nd onwards and about 7 weeks it gone to 10800 level from 9200 level.> about 1600 points up in 7weeks is really amazing and shook many traders really in its upward journey.

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We wrote in our yesterday post if Sbi,icici &Reliance shows weakness the banknifty may come down...But,inspite of these scripts fell down ( Reliance was in years low today) the banknifty is sustained above 10740 level and during the end it went up to 10810 level.

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The nifty was weak and unable to sustain above the 5440 level and closed down to 200 SMA.Now nifty has strong support at 5354 level. About 2 months the nifty was unable to move up beyond 5500 levels and on the other hand the banknifty reached to the life time high what are the cause's for this up move? The banks are showing great strength based on a very good results.Our national banks are firm when we compare with the global banks.In 2007 & 08 how the reality zoomed, now the banks are doing the same.The modernaization of our banks are attractive and proved to be an effective cost cutting that add additional margins to our banks.The Axis bank and Sbi are the few examples for this.

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Today we made about 80 points profits in intraday trading. we bought in the opening near the day's low i.e 10700 level and sold it near 50 and made few swing trade between 10735 to 790 and made a net of 80 points gain.We also advise not to go fresh positional long at this level and do all your intraday trade with strict SL. The banknifty is now said to be the benchmark of our indian market and hold our market from falling. when the other markets fell in the recent past our market did'nt react is based on this banks strength.

What we can expect on 18.08.2010?

The banknifty closed today very strong and the nifty was closed weak.The banknifty was in sideways for the last 3 days and it is taking support in the 400ema trend line,as long as it sustain above to it will be strong and it may now claim up another 100-200 points is not a big deal.The Euro zone as of now up (while writing this post). The FTSE is in 0.90%up..we need to see the 'US' markets tonight if all these global cue's are up our market may open gap up tomorrow.If banknifty open down to 10760 avoid long.The banknifty now in over bought zone.

BANKNIFTY INTRADAY

We have done excellent intraday trade today.

The banknifty now back to its usual swing after a long time.The opening we made a sell exactly at the high at 10755 and covered the same at 10684 and again sold at 10740+ level covered the same at 10686 and like wise we made 5 trades and made 175 + points profit in intraday trading.The intresting fact is we kept a SL in a technical level at 10764 and the market breached upto 10759 but our stop loss was safe and not triggered.During the 2.30 pm-we also made a sell at 710 level and bought the same at 10640 level.

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We are also giving 'Nifty trade tips" for free and today we made 60 points comfortably without sl hit.All our clients were really delighted and that made us more delightful.

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What we can expect for Tomorrow-17.08.2010?

The nifty was move down to 20 sma and also closed down to it.which is very weak and it has the next strong support level at 5360.00 if break down this a fresh correction starts and we also need to consider Reliance,Sbi& icici movements tomorrow.

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The banknifty seems to be a reversal as it faced a double top and the closing today was down to the 400 ema.As i said the SBI shows some correction will pull it down to 10440 level soon.if it trade below 10530 the weakness will be firm.Today the PNP shown great strength,was up about 2.30+%..inspite of this the banknifty was closed weak.I feel the banknifty many times breaks away all technical prediction.For example last thursday it was down to 10300 level and within 2days went to the all time peak of 10755+ levels.What i mean is a kind of gambling is on in this index future.

So play safe with proper stop loss...one wild swing may wipe out all your capital.The individul traders can not trade this without guidance or expertise.we wish you to take support from us.