Banknifty View for 27.01.2011

The Banknifty Shown today opening punch in 11241 but not seen this level.It was traded in 111780 level we sold in the opening and place buy at 11133.00 and we covered in 11140 after wards our target was achived.We made three conservative attempts and made 112 points net profit without single SL- hits inspite of today market eratic movements.Intrstingly many of our intraday clients made around 250 points today with our guidance.When it gone to 11290 level we guided to sell at peaks and bought it 11088 level.

The Banknifty shown today a high eratic move from 1120 to 1294 in less than 5 mins and fell about 300 points in no time.Luckily we did'nt have any position in that time.We had our old shorts and covered the same in 10920 level today after seeing about 250+points gain in our positional shorts.

"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.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." This we wrote in yesterday market pre-view.Today the banknifty slipped down to 10920 level and touched a low of 10887 and lastly traded in 10905.The RBI police announcement caused really a high jump&low jump moves in today market.

In our view the 27th the market will be choppy/down way trend as the F&o closing on 27th.The roll over and profit/short covering will be there.The Banknifty was in overbought situation and it has so many hurdle in its up move at present.The Nifty today touched 5795.80 but failed to cross the 800 level as it is a strong resistance now.The nifty fell sharply to a days low of 5676 level and it may take support in 630 level again and trade side ways.One can avoid short in 700 level and consider going long in 630 level with 605 as SL.

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.

The Market Done Unexpected Twist Today

In technical analysis the first leasson all we learned is -

" The market will beat every one".

Today the Nifty and Banknifty opened gap down and fell again sharply down and broken the trend line and was traded in a positional selling levels.The banknifty touched a days low of 10496 and nifty touched 5632.There were so many people sold and waiting to cover further down the banknifty from it 10530 level shoot up to 10909 level non stop in less than 10 mins time!!! No one knows/expected why this 400 points raise in short span of time.We may consider this as a gampling or market manipulation...really dont know how to name it!!

Many calls i have recived and many traders told me they put SL 50-150 points away but for many of them it did'n t triggered.What one can do at this situation!!.All the pre-market view that was failed today.Once in a while the market make us to realise the market is higher/greater then all of us.The market nature is such one can not learn all leasons in one day or few years...it is infact a ongoing/un-ending learning process those who has higher patiance and emotional maturity only can stay cool and win.The first thing we need to have is to 'accept the market as it is'.

The banknifty today lastly traded in 10834.In our view today the market shown so many running gaps on its way while moving up.This gap will be filled in the coming days as per the theory of 'Island Of Reversal'. Mainly the 600 -740 level it has to fill.The tomorrow is being a week end we expect profit booking comes in 10800-870 level.The nifty future were today many times traded in discount and in the pull back everthing changed and market totally changed it colours.Any way tomorrow if the market open above 10840 level it sustain well and become strong and below 10780 it can go down upto 630/580 level.At present we still not able to do the due-diligence why this up in few mins.

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We wish all trader do trading safely with SL.Do not panic...if you panic you will miss the market pulse.