Banknifty view for 21-12-2010

The banknifty may find difficult to cross the 11740 level.One can avoid long near this level.Once it cross the 11800 level it may act very bullish.In my view the banknifty may fall down from it 11600 level to 11400 level and trade side ways...if Nifty go beyond the 6020 level banknifty may move up aggersively...>> This is what i wrote in my friday's post.The banknifty opened today gap down in 11400 and fell down considerably..to 11274 level and again bounced up and crossed the day high 400 to 11444 and fell down to new days low to 11260 and that was the days low cum last traded price.

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We made about 147 point gain in intraday banknifty trading.In our view the banknifty may open in gap up and try to rush up to hit the 11480 level..if fails to move above this level again it may fail the bulls hope and fall down upto 11160 level.Now this 11170 area seems a critical support and broken by any means will add panic selling.

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Today Nifty opened in gap down at 5900 and able to touch a days high of 5999.That shows the bulls are ready on the shore to catch the fish.Be watch full in 6020 level market may zoom up..Avoid shorts when cross this level.

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BANKNIFTY FUTURE, view for MONDAY

The banknifty and nifty on 16th rose to the hieghts during the market closing.We made a gain of 172 points in banknifty intraday trading.The banknifty fell down from the opening and agin sustained well.In the afternoon session it took up to the new day's high.This is due to the high tax out go.The SBI alone paid 1850 crores from its q3 -2009>1795 crores.The other banks the tax out gone up markably higher than the previous years.

HDFC Bank - 750 cr. from- 400cr.
ICICI - 450cr. from- 301cr.
HDFC - 400cr. from- 320cr.

The Rbi Repo rate is unchanged.The banknifty finding very good support in 11100 level again and again it bounces up.I wrote in my old post above 11470 banknifty is very strong.The monday market will decide the further trend as nifty closed near it resistance area (The day high was 5988), a jump up above 6015 may boost its speed to move to another high and it may find hurdle in 6100 level, above this it will be bullish zone. The new listed 'MOIL' is not upto the investors expectation.Huge selling pressure was seen in it..in monday there is a possibility of fresh buy comes in in this stock.It is a good company to hold for longterm beyond 3 years.

The banknifty may find difficult to cross the 11740 level.One can avoid long near this level.Once it cross the 11800 level it may act very bullish.In my view the banknifty may fall down from it 11600 level to 11400 level and trade side ways...if Nifty go beyond the 6020 level banknifty may move up aggersively.It is safe to trade always with proper SL.

View For !5-12-2010

The Banknifty floated well in 11600 level.Though it touched the days low 11470 and again touched days new high of 11675 and lastly traded in 11574.

The Banknifty now strong above 11640 level one should not remain short if move ahead of this level and will be weak below 11470 level.Last 3 days the banknifty sustaining well in 11400-600 level and it seems its ready to explode to 11800 again.

The Nifty now struck in range bound and unable to move fast above its resistance area i.e. 5990-6015.if Move above this level it may lead all the index's to further hights and the present correction will be suspended.