BSE-Sensex--Technical View--11-2-2015

BSE- Sensex closed at 28355.62 on 10-2-2015

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 gap down at 28122.48 and made a low of 28044.49 and thereafter shot up and made a high of 28633.72 but could not sustain at the higher level and slipped down and came near the low of the day again and finally closed the day on a positive note after 7 days of fall which was expected and in this process it has also filled the gap it created today as well as the gap it left yesterday. It exhibited extreme volatility today and this is expected to continue till the Union Budget. However today’s up move was just a pull back and this may last for 2-3 days at the maximum or may end tomorrow also . Therefore it is suggested to try long call only if it moves above 28822.37 and maintains and note that it will regain momentum only above 29240 as of now. Short call can be tried on the rise but below 28570 with a stop loss of above 18650 or below 28220 with a stop loss of above 28270 for a target of 27940 & 27800. Please note that below 28822 the next critical support for sensex is at 27940 / 27485---27400. The bias is on the down side as of now.

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. The aggressive trader can try both long and short call  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.