Banknifty Pre-market view for 8-12-2010

The banknifty opened today in Gap Down about 74 points from yeserday's closing price.The opening was 12020 and we sold it and covered it with about 70 points gain.There on it shown more weakness in 11880 level and fell down to 740 and we bought in 768 and sold in 11820.Agin we sold in 828 level with sl@847...luckily the sl was not triggered we covered the short in 764.All our three attempts were gave a total 180 point approx. We also covered our positional short in 11710 level,which we sold the other day in 12494 level.Considering the Nifty levels which seems to be in a range bound/consolidation to move up.As expected the nifty touched a new day high during its closing from its day low 5956 to 6021.70 level.The banknifty lastly traded in 11805.

The banknifty we forseen and wrote in our yesterdays post will be weak below 12000 and may touch 11780.It also broken that level and touched a day's low 11689 and closing was above 780 level. Now the situation is the 'CAT on the wall'.So there is a possibility of going beyond 12000 level and sustain there for another few sessions .Now the Nifty may jump up...!! if jump above 6o93 level,it may add fresh buying.We need to observe tomorrow first two hours to confim this up move.One can take position afterwards.

Many mid-cap stocks are now trading at low...there is a chance for good buying for longterm investors.every fall is a boon for investors.

BANK NIFTY FUTURE TIPS

Today banknifty opened firm in 12465 and touched the days high of 12479 and sustained side ways more than hours and now weakness was seen as nifty showed upmove.The nifty opened today gap up 6035 and moved up and touched a day high of 6094. In our view the 6093 was a hurdle for the upmove/pull back rally.It was struck there and slowly fell down day low of 5988.

The banknifty start falling faster than nifty and touched the days low of 12046 and lastly traded in 12061.The banknifty now took support in 12000 level if tomorrow it breaks this it may fall down to 11790 level.The Nifty now weak below 5960 level.Last week nifty and banknifty shown up move day by day and today happen to be the first day of the week it shown weakness and closed weak.The banknifty expected to be trade in side ways on the coming sessions...if nifty gather strength and move above 6100 will confirm a rally. The nifty seems in consolidation mode all these days so it may explode.On the other hand banknifty shown kind of maturity in 12400 as this level attarct positional selling the buying was low.So when the supply was more and demand is less it fall down...thats what happening. Apart from this the recent 'Housing scam' made a uncertainity in Bankning &Financial sectors.it caused fear among the trader to go long.

Will It touch 12700 level?

The banknifty last 3 days gave a un-usual twist to reach the pinnacle.The trend is seems to be up&up. Today it touched high 12587. The Gap up opening from its previous closing 1358 to 12460...What a jump up!! Soon after its opening it shoot up to 12500 level and came down in the mid-session 12411 that was the day's low. Afterwards it consistently rose to 12500 and lastly traded 12539.The closing was very strong.

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The Nifty today was stuck in a narrow cage about 40 points and sustained well in 6020 level.Almost traded the whole day side ways. The Market is now in the hands of bulls.The bear was beaten enough. Considering the last few sessions performance the banknifty possibly can touch 12700 level. Now it may weaken or attract more selling pressure, if fall down to 12420 level. In my perception it may touch 12280 and bounce up/sustain side ways.

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Now avoid fresh shorts in Nifty...if move down to 5940 level one can go short with a S&R@6010 or wait for few more sessions to observe the direction to take any positional short/longs.

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The 'MOIL' -IPO over subscribed that may pump fresh money into the market. Now The recent past many IPO's witnessed huge returns(Eg-COAL India Ltd) for the real investor's. So, the market and its 'corrective phase' is suspended for the time being!!

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