BSE--SENSEX---A TECHNICAL VIEW FOR THE WEEK STARTING FROM--27-4-2015.

BSE-SENSEX

CLOSED  AT 27437.94 ON 24-4-2015.

Range for the week ended on 24-4-2015 was:-28539.46-----27344.70.

SUPPORT: - 27344.70 / 27248.45 / 26776.12 / 26469.42 / 25910.77 / 25232.82.

RESISTANCE: - 27485.77 / 27499.50 / 28044.49 / 28064.49 / 28087.78 / 28693.82 / 28822.37.

  

Sensex had a massive fall of 1194.72 points intra- day during the week under review and ended the week with a loss of 1004.16 points on closing basis, it had a devastating week. It is exhibiting gross weakness on the technical chart as it is below its critical points of 27485.77 & 27499.50 and all its short, medium and some of the long term moving averages and last of such average is at 27026 for 27-4-15 and break below this mark can put the long term uptrend in real danger, furthermore short and medium term moving averages are advancing for negative crossovers and if it happens and maintain for sometime then it could be devastating for a down move. . Its recent bottom is at 27248.45 and in all likely-hood it seems that it is going to break it in a day or two.  Going down it will find very good support in the range of 27026----26750 and if it violates this range then the next support range is between 26469----25910----25232.

After looking into all the technical aspects, I am of the opinion that it is likely to form a bottom in the range 27026----26750 possibly either on 28^th or 29^th April, 2015 and may stage a up rally from there, but I am not sure whether the expected bottom would be for good or it could be broken, this can only be judged once bottom is made and then seeing the intensity of the expected up rally.  I would therefore suggest to try sell call below 27430 on 27-4-15 with a stop loss of above 27510 for a target of 27225. Please note that the sell position should be squared off in any case in the range of 27026----26750 and long call can be tried around this range if it holds it with a stop loss of below 26750. It is important to mention here that for the resumption of smooth uptrend, it has to go beyond the long term moving average upper band which is at 28230 now and sustain and then crosses 28822.37 mark and sustain. Please avoid short call above 27500.

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 threatened and if it moves below 27026 and sustain then long term uptrend may end. Both long and short trade can be initiated 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.