Banknifty View for 6.7.2011

The Banknifty today opened in Flat as we were expecting a gap down.Hence we sold yesterday and was ready to cover STBT-Short in low but the Bn opened in flat at 11415...So we sold fresh in the opening and covered both shorts in 11352 level and when it jumped up during market closing, we re-sold the smae in 11470 and covered the same in 440 level.The BN today was in very choppy mode and almost 4 hours we made no trade and kept aside.When it crossed the 200DMA we waited to sell at the days high and sold in 470 and it touched the days high of 11480.When we saw the Nifty was in indecive mode and shown weakness and was unable to hold beyond 5665 level, we also sold nifty and kept our sl @668 that sl was not hit .So, we remain short in nifty.

From last wed' the market was not giving good chances for multiple intraday trades and it is now in a kind of suffocating phase as the bulls and bears are in tough fighting.

The nifty is not crossed the 200DMA ,where as the BN could jump up due to the SBI,bank of baroda and and other banks stocks.The FII"s are pouring money into our market that shows strength( We really not able to judge thier motive).But when we see the volumes, it is too low than usuall.On the other hand the Telangana MP's resingnation and other political scenario (Lokpal+Scams) seems a real thread to our market.So we skiped longs in index future.The IIP forcast/expectation also not going to favour the market.The DII'S sold about 880 crores today.

We need to observe market few more days to identify the firm direction.Till such time it is better to be a witness.

Banknifty view for 6.7.2011

The Banknifty opened in gap up and went down to the days low of 11350 and again in the afternoon session it broke of the earlier days high and touched a days high of 11436 level.Were as the nifty was struck in a range bound between 5642- 670 and the day high was 690 that was done in the opening and unable to go up beyond 5670 level as the selling begun.

The Nifty can be bullish above the 200DMA around 5747 level.Now it is weak below the Fridays low 5616 level.The Bank nifty now weak below 11350 and it can fall down to 10900 level once broken down this support.The Bn left a gap from friday closing 11295 - todays low 350.There are also so many running gaps left unfilled.The next immdiate resistance for bn is in 1476 level.(200 DMA.

So, I would change my views only if the nifty & Bn closes above the 200 Dma till then the Nifty and Bn Crawls in sideways and any worst news come it can fall down anytime.Now the choppy market it is not good for day traders.

Banknifty view for 4.7.2011

The Friday market we have seen the selling pressure in nifty and Banknifty.The market manage to open in gap up but it failed to sustain in the higher levels as the profit booking and fresh selling brought it down both Nifty & Banknifty.The nifty opened in 5700 and touched a days high of 702 and fell down to a days low of 5616 level.The Bn opened in 11299 and touched in days high of 11346,but we couldn't see it was trading in 346 level,we could only see in 320 for few mints than it slides to the days low of 11212.We made intraday short and covered the same in 50+ points gain in the opening and also sold fresh in higher level during market closing.

The Nifty witnessed trading below 5650 level most of the time.it shown much weaker than Banknifty.We mentioned in our previous post the Bn face hurdle in 11333 and nifty will face hurdle in 728 level.Now the Monday market expected to face some more additional selling.As the context in our nation now may turn become sentimentally negative.The RBI hike the Repo rate once again and that make our banks to hike the lending rates for Auto& Reality sectors.Which is fundamentally a negative sign for banks.The another thread now is the Congress MP's of Andirapradesh are planning to resign in Monday as their demand of Independent Telungana is unfulfilled.

The Nifty by any chance falling down to 5603 make a new possibility of downward bias.The Bn now the 11212 act as minor support and falling down to 10918 may take the market back to square one.There are many talks in many blogs the Nifty will reach beyond 6400 level..!!! we really doubt this possibility now.However the Tech view's are strong the fundamentally our market is not that much bullish.In the recent past many times the correction was done from this current levels.Not just that,There are many gaps was left unfilled in this relief rally.