Banknifty view for 25.01.2011

The banknifty today opened in gap up from its previous closing 10896 to 10935 and during opening it shown mild weakness and touched a days low of 10912.10.We sold in 972 and placed a buy at 912 but we covered near 940...as some strength was seen.

From 10912.10 it shoot up and up and consolidated well before breaking away the minour hurdles on its way and touched a days high of 11185 level and lastly traded in 11,140 .The banknifty is on the raise from last thusday onwards..we have noticed there were so many running gaps and that too the friday market was terrific.We have our technical views that the banknifty may be weak after the tomorrow RBI credit policy will be announced due to various facts,You can view in our face book last post.Even today the lifting may be caused by that.

The nifty today, certainly shown strength and done a high jump from 5715 to 735 level and that made many index's to zoom including banknifty.The SBI was gain good milage today.The banks policy change may impact the market more tomorrow so trade with caution.

In our view the banknifty tomorrow may open in gap down and become choppy/sideways.We do expect lot of profit booking may come and by chance slips below 920 it may add much selling pressure.The Nifty now has so many hurdle/Resistance on its up move so may be logged in narrow range.