BSE-Sensex-Technical View---27-1-2015

BSE- Sensex  closed at 29278.84on 23-1-2015

SUPPORT: - 29165 / 28822.37 / 28541 / 28064.49 / 27851 / 27703.70 / 27512.80 / 27500 / 27485 / 27354.99 27247 / 27203.25 / 27091.38 / 26845 / 26776 / 26469.42.

RESISTANCE: - 29630 / 29817 / 30150 / 30271.

 (Figures in bold are important)

Sensex opened with a huge gap up at 29189.45 and tried to fill the gap and made a low of 29165.56 but the gap still exist and thereafter it moved up and made a new all time  high of 29408.73 and closed the weekend at 29278.84.Today was the 7^th straight day of rise and with each passing up day its vulnerability for correction is increasing, therefore I once again caution trader  to be highly alert in long trade and handle it with extreme vigil and promptness because it may encounter severe profit booking anytime. It seems that this on- going up rally may get exhausted and take a  breather in the range of 29630—29820 and since we are not far away from striking this range ,I would therefore advice to book profit on existing long trades on every rise and avoid fresh long trade for at least 2-3 days.

The benchmark point for sensex is 28822 for the whole year of 2015, so the alert point for long positional trader is below 28822 and exit point is below 28720.

The aggressive trader can still go long above 29280 with a stop loss of below 29150 for 27-1-2015 but avoid fresh long trade if it consistently starts trading below 29150 because then correction may set in. I once again repeat to avoid fresh long trade for at least 2-3 days, because of the over optimism and exuberance prevailing in the market for the last couple of trading sessions which is a distinct indication of a top for now is  nearby.

Going up it will face resistance at 29630 / 29820  & 30150 level and moving down it will have support at 28822 / 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. It is still buy on dip market but I would suggest to avoid fresh long trade here instead it is suggested to book profit on existing long trades on every rise because we are not far away from the expected exhaustion range.

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.