BSE-Sensex-Technical View--2-2-2015

BSE- Sensex  closed at 29182.95 on 30-1-2015

SUPPORT: - 28822.37 / 29120 / 29047 / 28672 / 28555 / 28310 / 28156 / 28064.49 / 27851 / 27703.70 / 27512.80 / 27500 / 27485 /  27203.25 / 27091.38 /  26776 / 26469.42.

RESISTANCE: - 29844 / 30150 / 30271.

 (Figures in bold are important)

Sensex opened with a up gap at 29801.60 and made a new all time high of 29844.16 but could not sustain at higher level and moved in a negative territory in no time and then steadily moved down during the day and made a low of 29070.48 before closing the week at 29182.95. It was a devastating day today and as expected the desired correction has set in and that too around the anticipated range (see my post dt-27-1-2015) and sensex tanked  by more than 770 from days high during the day  and finally closed  498.82 points lower on 30-1-2015.This correction may last for few days and these are the possible points from where it can bounce back 28822 / 28670-555 / 28310-28150 / 27940-750 / 27500-250 and resumes the up move again.

It is important to mention here that 28822 & 27480--500 these are the two benchmark points for the sensex for the entire year of 2015,therefore be alert in long trade below 28822 and avoid long trade below 27480 for sure till it bounce back above 27500 and sustain.

Technically it has tested the short term moving averages today and broken few of them too and it is also near certain long term parameters the range for which is between 29130-28840(it changes every day) for 2-2-2015, therefore it is suggested to avoid long call below 29130 and below 28844 for sure instead try short call below 29070 with a stop loss of above 29150 for a target of 28850 & 28700. Overall it is advised to avoid long call for at least 2-3 days. However those who want to take long call should only try it above 29280 with a stop loss of below 29220.

Going up it will face resistance at 29845 level and moving down it will have support at 28822 / 28700 & 28550.

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 today’s move clearly indicated that correction has set in therefore long trade is ruled out for now till it gives ample indication of correction completion.

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.