The Recovery was great!!

In- My yesterday post i wrote there may be a gap down opening tomorrow and today it opened in deep gap down and went up near 12300 level and in the mid-session due to the missile attack of korea's made panic among market players and a free fall seen .The banknifty day low was 11865 and in the after noon the recovery "u" Turn was very fast and strong and gone above 12250 level.The Nifty Was shown huge buying this may happened due to panic short covering..We were expecting it may breake the day high during closing but it trade well in 5955 but some how it missed to cross over the day high 5968!!!.

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The F&O closing is in a short while within next 2 days,so more swing in market is on card . The nifty 6000 call option added more volume today that may be used as headging against the future shorts.

Tomorrow A opening above 5940 will make market to 6000+ levels and more panic buying may comes in.If,open down to 5867 more fresh selling comes in and that may push down nifty to 5780 level.

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Banknifty, Now is in a preparation for one more upmove!!

if sustain and trade above 12290 level in another 3 to 5 session it may make it strong rally again Or it will move side ways.below 11750 it will be week.

I s the correction Suspended!!!

In my yesterday post i wrote clearly dont remain in shorts and avoid shorts.As per our market pre-view the market today rose un-expectably and the afternoon recovery was amazed many day traders.Many people were struck in short and expecting the banknifty will fall further down to 12000 level where us it took support and shoot up to the new days high 12450 from the days low 12065 level about 400 points swing in intraday.

The Nifty Was shown great weakness last week as the selling pressure was huge due to the spectrum and other expected political instability traders expected huge fall/correction.Now the market gave a new twist...As i used to say market beat's every one.We have covered our shorts in friday near 12000level and were gone fresh longs which we exited today near12420 level.We also made about 150 points + in intraday trading.

Now the banknifty tomorrow may struck in side ways as the f&o closing is near by in 3 days.The EOD chart shows still weekness and a gap down opening may be there tomorrow.The nifty closed strong above 6000+ level now the 6100 act as a resistance a bounce up above this level will add more buying pressure.

Will The correction Take Place?

Finding Way ouT To Answer This Question!!! The nifty last week huge selling was seen and during the deepawali day its gone to new high and sustained in a range. But from last 3 days trading, the nifty much selling pressure was seen .Nifty broken the critical supports-5932 and 5876 and closed weak.

In my view,

Happened due to the 2G-Spectrum Scam and the follow up Political Scene.The media were showing so many angles about the scam and its impact on the coming days.The Oppossition political parties were asking the PM to resign..This made a mess in the traders mind.The traders were not willing to take risk as many rumours about the ongoing strom in our parliment..this made the traders not to risk over carring the week end positions that would have probably added more selling pressure.The coming Thursday the F&O closing that make more swing in market.Now the cross over of 5900-6000 level may act as hurdle for upmove but after F&O closing the market may again move up.The banknifty may take support in 11780 level and bounce up again to 12,000+ levels.I wish avoid fresh shorts till f&o closing.