BSE-SENSEX--( A TECHNICAL VIEW )--- FOR THE WEEK STARTING FROM---20-4-2015

BSE-SENSEX

CLOSED AT 28442.10 ON 17-4-2015

SUPPORT: -28065 / 28044 / 27499 / 27485 / 27248.45 / 27203 / 26776.12 / 26469.47.

RESISTANCE:-28693.82 /28822.37 / 28978.74 / 29097.61 /  29183.76 / 29369.53 / 28522.86 / 29844.16 / 30024.74.

Sensex opened on a flat to positive note at 28682.97 and made a high of 28696.19 and thereafter slipped in a negative territory throughout the day and made a low of 28403.76 before closing the day near the low at 28442.10. It is already running and closing below its critical level of 28822.37 for last three days now, which is a bad sign, furthermore it has also broken almost all its short term moving averages and some medium term averages too ,therefore it indicate  that the on- going fall may accelerate from here  and going down it will have the potential strong support area is in the range of 28044----27000. However to negate this it has to move sharply beyond 28725 level immediately, possibility of which looks remotest at this point of time.

 I would once again like to mention here that it has Fibonacci Retracements support points at 28658 / 28389 / 28171 / 27953 / 27684 one of which it has already violated and pretty close to second one however it may bounce back from any of the remaining points, therefore one should be vigilant around these point but please note that if it starts trading below 27684 then it can  break the recent bottom of 27248.45 which it made on 27-3-2015. Furthermore its long term moving average range is between 28202---27000 now (it changes every day with price movement) and break below the upper band of the average ie-28202 will threaten the long term uptrend and consistently trading below 27000 will put the existence of uptrend in real danger, therefore if uptrend has to remain intact it cannot afford to stay below the upper range of the average for a longer time period even if it breaks it.

In view of the above, I would suggest to try sell call now below 28440 and below 28403 for sure with a stop loss of above 28525. Long call can be tried either near 27000 with a stop loss of below 26900 or above 27500 with a stop loss of below 27400. 

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 since down correction is on I would advice to avoid long call now instead  try sell call as suggested above and long call can only be tried at points mentioned 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.