BSE-SENSEX-Technical View---29-12-14

BSE-Sensex  closed at 27241.78on 26-12-2014

SUPPORT: -  27160 / 26997/ 26795 / 26469.

RESISTANCE: -27324 / 27372 / 27526 / 27646 / 27740 / 27851.10 / 27924 / 27980 / 28268 / 28823.

  (Figures in bold are important)

Sensex opened on a positive note at 27215.19 and made a high of 27370.63 and then moved down and made a low of 27091.38 before closing the day and weekend at 27241.78.After two strong down day it took a breather today and closed a shade higher at 18241.78 then the previous days close but it is still not showing the required strength in it. It can regain the up momentum only, if it moves above 27924 & 28268 and stay, chances of which are looking slim at this point of time, furthermore some other important technical parameters are showing distinct sign of weakness and indicates that it may seek lower level in coming days and it could break 26108 mark. I would therefore suggest to avoid long call now till clarity on short bottom formation emerges. Please  note if it fails to hold the level of 26997 & 26795 then the recent bottom of 26469.42 it made on 17-12-14 can be taken out for sure. I would therefore suggest to  try long call only if it moves above 27924 or above 27750(it changes every day) which is the upper band of the short term moving averages and stays otherwise try short call on the rise at appropriate level with an adequate stop loss or if it trades below 27180 with a stop loss of 27260, aggressive and intra-day trader can try long call above 27250 with a stop loss of below 27200 on 29-12-14 after watching at least half an hour trade. Please avoid long call below 27180 & 27090 for sure for the entire week starting from 29-12-14.Going down it can have support at 27160 / 27024 / 26997 & 26795,moving up it will have resistance at 27852 / 27925 & 28268. 

 

REMARK:-  :- Long term up trend is intact but since nifty is in correction mode ,therefore it is suggested to avoid long call for now and below 27180 & 27090 for sure for the entire week starting from 29-12-14. Short call can be tried on the rise or below 27180 with a proper stop loss.

Kindly note that make your cost your stop loss in favorable  trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Note: Price stated here is of spot market

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