BSE-SENSEX---Technical View For----18-2-2015

BSE- Sensex closed at 29135.88 on 16-2-2015

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.

 (Figures in bold are important)

Sensex opened with a small up gap at 29170.77 and made a low of 29083 and in this process it has filled the gap also which is good and then it made a high of 29325.35, crossing the multiple top range of 29278 and  retracing more than 70% of the recent fall and finally closed at 29135.88 Technically it is looking good but  the noticeable thing today was that, it crossed the multiple top range of 29278 and retraced more than 70% of the recent fall  but could not sustain at higher level and closed not very far away from the low of the day  which is creating a question mark that this on-going up rally may either take a breather or get exhausted here until and unless  it moves above 29420 mark and stays, therefore I would suggest to book at least part profit here and on the rise too in existing long trade  and take fresh long call only if it moves above 29420 and stays because then it can possibly surpass its previous high of 29844.16 in coming days. 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.  It is advisable to exit long trade if it consistently starts trading below 28920 on 18-2-2015.

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. It is suggested to book part profit on existing long trade here and on the rise too and take fresh long call if it moves above 29420 and stays.

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.