BSE-Sensex-Technical View ----22-1-2015

BSE- Sensex  closed at 28888.86on 21-1-2015

SUPPORT: - 28822.37 / 28541 / 28064.49 / 27851 / 27703.70 / 27512.80 / 27500 / 27485 / 27354.99 27247 / 27203.25 / 27091.38 / 26845 / 26776 / 26469.42.

RESISTANCE: - 30150 / 30271.

 (Figures in bold are important)

Sensex opened with a small up gap at 28843.09 but filled the gap immediately and made a low of 28792.57 and thereafter made a new all time high of 28958.10 before closing the day at 28888.86.Technically it is showing good strength so buy on dip strategy still to continue, but since it is vertically moving up therefore its vulnerability for correction is also increasing and very high at this point of time. So the long trade should be handled with extreme vigil and caution therefore avoid fresh long trade  and  get alerted below 28810 in existing long trade and exit trade below 28700. Please note that since it had a vertical rise it may encounter profit booking anytime ,furthermore it may go in for moderate correction if it breaks 28700( it changes every day)level.

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.