BSE-Sensex-Technical View---21-1-2015

BSE-Sensex  closed at 28784.67on 20-1-2015

SUPPORT: - 28541 / 28064.49 / 27851 / 27703.70 / 27512.80 / 27500 / 27485 / 27354.99 27247 / 27203.25 / 27091.38 / 26845 / 26776 / 26469.42 .

RESISTANCE: -  28822.37 / 28829.29 / 28861 / 30150 / 30271 .

 (Figures in bold are important)

Sensex opened flat to negative at 28624.85 and the open was the low also and thereafter it steadily moved up and crossed the previous  high of 28822.37 by a whisker and made a new all time high of 28829.29 before closing the day at 28784.67.It had a robust up move today and it is exhibiting tremendous strength but it is not moving in sync with nifty, furthermore it did make a new all time high but could not close above it whereas nifty has closed way above its previous all time high, it has made short of a triple top in the range of 28808—28830,therefore fresh long position should  only be taken if it maintains above 28830,  however  one can buy on dip at proper level with an adequate stop loss. Please note that it may encounter profit booking in the range of 28790—28940(valid for 21-1-2015) and it may correct from here, so the long trade should be handled carefully and cautiously, and stop loss for the long trade would be below 28640.

Going up it will face resistance at 28861/ 28940 & 30150 level  and moving down it will have support at 28541 & 28294.

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.