Banknifty View for 5-01-2011

Banknifty opened today with an unexpected gap up and made the opening punch was 11950.20 and that was also the day high.Technically the Banknifty fooled many to initiated long as the opening shown strength.We too gone long when it fall down near 11890 and kept our SAR @ 11872.00 Once it got triggered in no time we asked our clients to place buy at 11777 and that was achived.But the market broken all supports and came down another 180 points the day low made was 11595 and lastly traded in 11608.20.we could make another attempts and made little gain.We gave a indication to all clients the recovery may not possible..based on this many went short in 11740 and covered in 600 level on their own.

In our yesterday view we wrote if broken 11882 it may fall 100 points and take support at 770.But all supports broken today now the banknifty is in positional sell mode as the 400&1300 ema's were broken.

Tomorrow the banknifty may possible to pull up in the opening around 11660 if sustain it will be side ways.The other possibility is more selling pressurse can push it down to 11480 level below this it is very weak and drastic fall may occur.So our view the banknifty may try to trace back it path to move near 11700 level .

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