Banknifty view for 7.7.2011

The banknifty and nifty showed weakness as we stated in our yesterday post.Both these index's today opened in mild gap down and shown weakness there on.The Bn touched a days high of 11444 and fell down to days low of 11281.We sold bn today at 11430 and 50% covered in 360 and balance 50% covered in-11332 level.Again we bought it in 325 and sold the same in 11370 level.So ,the intraday we made a net gain of 110 + points.Today the market gave a kind of indication for intraday trading unlike the last few days market shown a lackluster trade.

We sold Nifty positional short twice in 720+ 680 levels and not yet covered the short.
Intraday we made about 35 points in Nifty.We were mentioned the nifty may have resistance at 668, today it touched a days high of 5667.50.The support we said was 6616 and today nifty made exact low at 617.50 and shot up.The Nifty today was held well between this level where as the banknifty shown clear weakness as it broken down the 350 support and gone to 281 level.This happened due to today weakness in SBI.TheNifty was moved like a snail and on the coming session it may slide down to 555 level.The Bn now has support in 10912 and 11168 level breaking down these level bring down bn to 10800 level.

The banknifty is having selling pressure in 11430 level and the selling pressure is shallow and it could only brought down the price very little.This may be caused due to the FII's inflow.Today the FII's net buy seems very less about 220 crores compare to the past 10 days (Used to buy above 700-900 crores).

Today the hot news is the Textile minister Dayanidhi Maran whose involvement in the spectrum case, the cbi filled a case in SC and the opposition want the PM to drop him.The Murali Deora offered his resignation already...What next?? My crictic says there is a thread on the political front.

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.