BSE Sensex--Technical View---9-2-2015

BSE- Sensex  closed at 28717.91 on 6-2-2015

SUPPORT: - 28672 / 28555 / 2310 / 28064.49 / 27851 / 27499.42 / 27485.77 / 27203.25 / 27091 / 26776.12 / 26469.42.

RESISTANCE: - 28822.37 / 29144 / 29183 / 29278 / 29844.15.

 (Figures in bold are important)

Sensex  opened on a positive note at 28892.21 and made a high of 28922.85 and then went down  and made a low of 28647.14 before closing the weekend at 28717.91. It is exhibiting weakness on the technical chart as it is below some of its short term moving averages and one long term parameter too, furthermore it has broken its critical support level of 28822.37 and if it stays below this mark then it may go in for much deeper correction ,therefore long call is completely ruled out  below 28822.37 till it bounces back above it and stays or try it above 29280,I would advise to try long call only if it maintains above 29280. Please note that since today was the 6^th straight day of fall, it may stage a pull- back rally now if it manage to holds the level of 28647 otherwise it may take few more days but I would suggest do not try to take advantage of the pull back rally and try long call only if it moves above 28822.37 or 29280 and stays. The aggressive intra –day trader can try long call near 28647 with a stop loss of below 28600 similarly short call also be tried below 28647 with a stop loss of above 28720.

Going up it will face resistance at 28822.37 / 29183 & 29280 level and moving down it will have support at 28647 / 28555 / 28310 & 28064.

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.

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.