BSE-Sensex-Technical View--14-1-2015

BSE-Sensex  closed at 27425.73on 13-1-2015

SUPPORT: - 27354.99 / 27247 / 27091.38 / 26845 / 26776 / 26469.42 / 26220 / 25910.77 / 25460 / 25232.

RESISTANCE: - 27486 / 27500 / 27761 / 27851.10 / 27924 / 28064.49 / 28267 /28541.96 / 28822.37.

 (Figures in bold are important)

Sensex opened on a positive at 27611.56 and made a high of 27670.19 and thereafter was moving in a range throughout the day before plunging down in the last hour of trade and made a low of 27324.58 and closed the day at 27425.73. It could not sustain the critical point of 27500 and closed below it, today’s move was disturbing and indicative of further down move. I would therefore suggest to avoid fresh long call completely till it closes above 27500 and sustain it for at least 2-3 days, however those who are still holding long trade should not add fresh long trade in any case and exit long trade if it  gives sign of closing  below 27330.

Going up it will face resistance at 27500 / 27761 / 27851.10 & 27824 and moving down it will have support at 27247 / 27091 & 26776.12..

Kindly note that profit should also be booked in trade from time to time at the appropriate points so that you can take advantage of the market swings.

REMARK:-  :- Long term up trend is still intact. Since it has closed below the critical point of 27500, therefore long call is completely ruled out till it closes above it again and stays their  for at least 2-3 days.

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.

Contact me for strategic guidance to enter and exit the trade.