BSE-Sensex-Technical View ----19-1-2015

BSE-Sensex  closed at 28121.89on 16-1-2015

SUPPORT: - 28064.49 / 27851 / 27703.70 / 27512.80 / 27500 / 27485 / 27354.99 27247 / 27203.25 / 27091.38 / 26845 / 26776 / 26469.42 / 26220 / 25910.77 / 25460 / 25232.

RESISTANCE: - 28194.61 / 28267 / 28352 / 28541.96 / 28822.37.

 (Figures in bold are important)

Sensex opened on a slightly flat to negative note at 28056.61 and made a high of 28176.10 and a low of 27945.31 before closing the week at 28121.89. It seems that today was the day of consolidation after yesterday’s euphoric rise and it closed with a gain of around 50 points. It is showing firmness and strength which is indicative of a good up move ahead.

The technical parameter also suggest to adopt buy on dip strategy and the authentic stop loss for positional trade should be close below 27470 but for day trade the stop loss should be below 27700 . Please note that it could encounter profit booking in the range of 28106--28630, so the long trade should be handled carefully and cautiously.

 Please do not forget that the up gap it left on 15-1-2015 still exist and chances of filling this gap is distinct at least in next 2-3 days and if it breaks the level of 27703 then it will attempt to fill the gap and in this process it can come down to 27512 level but if it fails to fill the gap in next 2-3 days time then it will be difficult to say in what time frame it will fill it. Therefore one can go for long trade on dips but with caution and get alerted below 27703.

Going up it will face resistance at 28267 / 28352 & 28542 level  and very stiff resistance in the range of 28630--28920 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. I would suggest to adopt buy on dip strategy with caution and suggested stop losses.

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.