Banknifty View For 3.02.2011

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.This we wrote in our pre- view.

The Banknifty opened in gap up at 10600 from its previous closing 10493.45 and touched the high of 10640 in opening.We sold in the opening near 10620 and placed buy at 571 it was bought.Today we done 5 trades and almost all were successfully covered without sl hits and made a net gain/profit of 110+ points.

The banknifty was caught in a narrow range for a long time between 10540-590 level we kept waiting and when it gone to 620/30 we sold twice and covered in 585 but the news of Ex-telecom Minister Raja arrest were flashed in tv the market gave up the hope and fell sharply to 500 then slide down to a new days low of10452.The nifty Was Trading near 5500 level and came down to5429 level.

The tomorrow we expect a bounce up in both Banknifty and Nifty.The Nifty weekly MA rised and its having lot of chances to go beyond 5530 level once sustain above 540 it may consolidate and sharp move in the upside can be expected.The Banknifty was very weak below 10470 today it touched low of 452 that caused due to the exhaustive gap down so we need to observe it tomorrow weather banknifty sustain above 10540 or not.It will act bullish now above 10680 level or slide down to 388 level.The other chance is it crawls in sideways/become choppy.