BSE-Sensex-Twchnical View---15-1-2015

BSE-Sensex  closed at 27346.82on 14-1-2015

SUPPORT: - 27247 / 27091.38 / 26845 / 26776 / 26469.42 / 26220 / 25910.77 / 25460 / 25232.

RESISTANCE: - 27354.99 / 27486 / 27500 / 27761 / 27851.10 / 27924 / 28064.49 / 28267 /28541.96 / 28822.37.

 (Figures in bold are important)

Sensex opened on a flat to positive note at 27432.14 and made a high of 27512.80 and thereafter made a low of 27203.25 before closing the day at 27346.82. It again get past the critical point of 27500 today but could not close above it which shows growing weakness in it and if it does not close above the 27500 point in next 2-3 days and stays then it may start moving down for a reasonable to significant correction. I would therefore suggest to avoid fresh long call completely till it closes above 27500 and sustain it for at least 3-4 days. However those who are still holding long trade should exit trade tomorrow. In fact aggressive trader can try short call on the rise but below 27458 with a stop loss of above 27500 for a target of 27091.

Going up it will face resistance at 27460 / 27500 / 27761 / 27851.10 & 27824 and moving down it will have support at 27247 / 27091 & 26776.12..

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 it is still below its critical point of 27500, therefore long call is completely ruled out till it closes above it again and stays there for at least 3-4 days.

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.