Banknifty View for 2.02.2011

The tomorrow market may seen a fresh bull back rally if nifty sustain well above 5540 level,The banknifty today claimed to 10724 level this may caused due to panic short covering as it again fell down to 520 level and shown some closing jerks and the closing gave no clear cut direction for tomorrow...if, open above 10770 it may act bullish or open down to 10587.

This above one is what we wrote in our yesterday post about today market.The Banknifty opened in gap up at 10700 from its previous day's closing 672, and touched a days high in the opening 720.It acted bullish as Nifty was also opened in 5542 level but it could'nt sustain in this level within 20 mins of market opening it fell down to 10,600 level from there on it was in side ways from 555 to 600 level and didnt give much chance to any buy/sell, then finally fell to 500 level and touched a low of 10470 during market closing.

The Today market was kind of choppy about more then 2 hours in a narrow range. The nifty ,Bn was done its best to move up after a long consolidation where as there were no sufficient buying pressure it could'nt move up.

The Banknifty now broken down the 400/1334 EMA's gone touched the low of 10470.if tomorrow by chance if it open down to 470 it may fall shrply to 388/222 levels.If open near 540 it may crawl up to 680 level and become choppy.The Nifty we need to observe closely as it touched a day high of 5542 and also touched a days low of 5411.It gives a negative signal as it may test its critical support near 5340...!! if broken this level, a deeper correction may occur.So let us hope a bounce up/gap up opening.