BSE-Sensex-Technical View For-9-1-2015

BSE-Sensex  closed at 27274.71on 8-1-2015

SUPPORT: -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 27178.77 and made a high of 27316.41 and a low of 27101.94 before closing the day at 27274.71.It gave a huge up move of more than 360 points today after two day’s fall, as of now it seem that it is pull back rally and may exhaust around 27450 & 27575 level or may extend up-to 27761 level but not likely to sustain these level .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 advice to take long call only if it moves above 27500 and stays, therefore short call can still be tried below 27500 with a stop loss of above 27575.

Going up it will face resistance at 27450 / 27500 / 27575 & 27760 and  moving down it will have support at 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. But long call should be taken only if it moves above 27500 and stays with a stop loss of below 27450 and short call can be tried below 27500 with a stop loss of above 27575.

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.