BSE Sensex--Technical View---10-2-2015

BSE- Sensex closed at 28227.39 on 9-2-2015

SUPPORT: - 28064.49 / 27851 / 27739 / 27499.42 / 27485.77 / 27203.25 / 27091 / 26776.12 / 26469.42.

RESISTANCE: - 28566.50 / 28647.14 / 28718 / 28822.37 / 29144 / 29183 / 29278 / 29844.15.

 (Figures in bold are important)

Sensex  opened with a gap down at 28566.50 and the open was the  high also for the day and then it steadily went down and made a low of 28183.32 before closing the day  at 28227.39, the gap it created today is still there. It is exhibiting weakness on the chart but since today was the 7^th straight day of fall it may stage a pull- back anytime but will it sustain or not cannot be said at this point of time, therefore it is suggested that do not try to take advantage of the expected pull back rally and try long call only if it moves above 28822.37 and maintains and note that it will regain momentum only above 29230 as of now. The possible levels from where it can bounce back and give a relief rally are at 27948 / 27485 / 27203 / 27091. Therefore as of now I would suggest to try short call on the rise but below 28570 with a stop loss of above 28650 or below 28180 with a stop loss of above 28240 for a target of 27940 & 27800 on 10-2-2015.

Going up it will face resistance at 28566.50 / 28647.14 / 28718 /  28822.37 / 29183 & 29280 level and moving down it will have support at 28064 / 27940 / 27751 / 27485.

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 correcting now therefore it suggested to avoid long call till it gives visible indication of correction completion. Short call can be tried as suggested above .

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.