BSE-Sensex-Technical View---16-1-2015

BSE-Sensex  closed at 28075.55on 15-1-2015

SUPPORT: - 28064.49 / 27851 / 27703.70 / 27512.80 / 27500 / 27485 / 27354.99 27247 / 27091.38 / 26845 / 26776 / 26469.42 / 26220 / 25910.77 / 25460 / 25232.

RESISTANCE: -  28267 / 28352 / 28541.96 / 28822.37.

 (Figures in bold are important)

Sensex opened with a huge up gap of more than 318 points at 27831.16 and made a low of 27703.70 and thereafter steadily moved up and made a high of 28194.61 before closing the day at 28075.55. Since today’s move in the sensex was news led (Repo rate cut by RBI) therefore it has to be seen how it settles down in next 2-3 days before initiating fresh  trade. The fact remains that It has closed way above its critical point of 27500 today but yet to cross the important points of 28267 & 28352 , however it is still showing firmness and indicative of smooth up move ahead and also suggest that now it is a buy on dip market with a stop loss of close below 27470. But I would still suggest to wait and watch to see how today’s news led euphoric moves pans out in next 2-3 days before initiating any fresh long call.However aggressive trader can go ahead with long call on dip with suggested stop loss.

 It is important to mention here that the gap it left today still exist and if it makes an attempt to fill the gap in next 3-4 days then it can come down to 27512 level.

Going up it will face resistance at 28267 / 28352 & 28542 level  and very stiff resistance in the range of 28620--28909 and moving down it will have support at 27851 / 27703 & 27485.

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 sensex has decisively closed above the critical point of 27500, so it suggest to go long on every dip with a stop loss of close below 27470.But I Would suggest that since it was a news led move therefore give it at least 2-3 days breather before initiating any trade.

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.