BSE-SENSEX ( A TECHNICAL VIEW )----11-4-2015

BSE-SENSEX

CLOSED AT 28879.38 ON 10-4-2015

SUPPORT: -28822.37 / 28693.82 / 28065 / 28044 / 27499 / 27485.

 RESISTANCE: - 28978.74 / 291183.76 / 29369.53 / 28522.86 / 29844.16.

Sensex after making bottom at 27248.45 on 27-3-2015 made a good up move  and in eight days session it went up strait by more than 1650 points and closed the weekend at 28879.38 near the high of the week i.e 28907.81 .It has almost retraced 61.8%(28964.19) of the total fall from 30024.74 to 27248.45. It is above its all short and long term moving averages and also closed above its critical point of 28822.37 for 2 days in a row  whereas nifty is above its critical level for consecutively 5 days, therefore chances of giving whip saw around it  or breaking the critical level by sensex is distinctly possible until it sustain above it for another 2-3 days ,therefore fresh long trade should be avoided below 28822.37 for sure  , however it is  not showing any sign of weakness as of now but please also note that going up from here it will have very tough resistance in the range of 29120 – 29480 according to one technical parameter and piercing through this wall of resistance looks tough although sensex is in good momentum right now.

It is important to mention here that if it is a pull -back rally which it seems to be then it may end here or may be around 29130--29275 level and to prove it otherwise it has to cross the above mentioned wall of resistance and go beyond 29844.14 level for resumption of the smooth up journey again, which seems slightly difficult as of now. 

In view of the above observation one should be circumspect in their trade position and specially long call should be handled with caution, although it is not showing any sign of weakness but considering that it has retraced almost around 61.8% and tough resistance range ahead I would prefer not to initiate long call now instead after watching the market for some time I would try to take sell call at appropriate point but below 29275 with a stop loss of above 29370.

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 still intact. But wait for fresh long trade till it closes above 28822.37 mark for another 2 days. Please avoid fresh long call if it consistently starts trading below this mark.

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.