BSE-Sensex-Technical View For-12-1-2015

BSE-Sensex  closed at 27458.38on 9-1-2015

SUPPORT: - 27355 / 27335 / 27256 / 27091 / 26776 / 26469.42 / 26220 / 25910.77 / 25460 / 25232.

RESISTANCE: - 27355 / 27485 / 27500 / 27851.10 /28064.49.

 (Figures in bold are important)

Sensex   opened with a up gap at 27404.19 and made a high of 27507.67 and a low of 27119.63 before closing the day at 27458.38.It was a day of great upheaval for it  and in the process it did get past the critical level of 27500 by a whisker but could not close above it, so overall it seems that the on- going pull back rally is either completed or near completion, however optimistically at the most it can extend up to 27761. Kindly note that sensex will gain real strength and resume smooth up run again only if it moves above 27500 and sustain it for some time. I would therefore take a long call only if it closes above 27500 and stays for at least 2-3 days with a stop loss of close below 27450.

However aggressive and day trader can try both short and long call at proper levels, one can take long call now for a target of 27575 / 27650 & 27760 but get alerted if it starts trading below 27365 and exit trade below 27310, short call can be tried below 27350 with a stop loss of above 27455 for a target of 27250 & 27091. I once again reiterate that it will regain steady up momentum only if it could sustain above 27500 mark.

Going up it will face resistance at 27500 / 27575 & 27760 and  moving down it will have support at 27256 / 27091 & 26776.

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 strictly advice to take long call only if it closes above 27500 and stays, but aggressive and day trader can try both long and short call using the above mentioned levels and 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.