BSE-SENSEX--Technical View---16-2-2015

BSE- Sensex closed at 29094.93 on 13-2-2015

SUPPORT: - 28822.37 / 28731 / 28469 / 28406 / 28064.49 / 28044 / 27851 / 27739 / 27499.42 / 27485.77 / 27203.25 / 27091 / 26776.12 / 26469.42.

RESISTANCE: - 29144 / 29160 / 29183 / 29278 / 29420 / 29844.15 / 30315.

Range for the week ended 13-2-2015:-28044.49---29154.67

 (Figures in bold are important)

Sensex had a good run during the week under review and closed the weekend with good gain at 29094.93 .It is showing strength on the technical chart but it will gather real momentum if it moves above 29278 and stays, however fresh long call can be initiated above 29154.67 with a stop loss of below 29080 . I would like to mention here that it can face resistance at 29278(which is a short of multiple top range) and then at 29420 which is 76.40% retracement point of the total fall from the top of 29844.16 and bottom of 28044.49 however if it cross this mark of 29420 and stays then it can possibly surpass the previous high of 29844.16 in coming days, chances of which are looking o.k as of now. Please note that it has critical support at 28822.37 so fresh long call should be avoided below this for sure and the authentic stop loss for positional long call is also below this mark .

Going up it will face resistance at 29183 / 29280 & 29420 level and moving down it will have support at 28822.37 & 28731.

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. The pull back rally is on therefore long 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.