BSE--SENSEX---A TECHNICAL VIEW----11-5-2015

BSE-SENSEX

CLOSED AT 27105.39 ON 8-5-2015.

Range for the week ended on 8-5-2015 was:-27603.71-----26423.99.

SUPPORT: - 27011 / 26897.54 / 26776.12 / 26469.42 / 26423.99 / 25910.77 / 25232.82.

RESISTANCE: - 27205 / 27248 / 27326--70 / 27475.13 / 27485.77 / 27499.50 / 27502 / 27603.71 / 28044.49 / 28064.49 / 28087.78 / 28693.82 / 28822.37.

BSE-Sensex made temporary short bottom on 7-5-15 at 26423.99 around its strong support area of 26776--26469(see my post dt-4-5-2015) and closed the week at 27105.39. The on- going up move seems to be a pull back rally of the recent fall   and this rally may get exhausted in the range of 27330 -- 27604 in a day or two, but if it moves above 27604 mark and sustain then this rally may extend up to 27800---28200 chance which are looking slim at this point of time. I expect the rally to fizzle out in the range of 27350---27520 or earlier.

The trend is down for sure therefore it is suggested to avoid positional long call ,but the day trader who want to take advantage of the on going relief rally can try long call above 27110  for a target of 27200---27370----27500, but please get alerted below 27060 and exit long trade  below 27011 for sure. Since it is in short and medium term downtrend and long term up-trend is severely threatened, therefore I, personally would not like to go for long call instead, I would look for opportunity to try sell- call on the rise at proper points or below 27011 & 26897.54 with a stop loss of above 27070 & 26930. Please also note it is tremendously weak on the technical chart and the major technical parameters are indicating that it may break the recent bottom of 26423.99 it made on 7-5-2015 and may seek much lower levels in coming weeks and months. Therefore long call should be handled with extreme caution as because technically it is clearly sell on the rise market as of now.

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.

REMARKS:- Long term up –trend is severely threatened and the on-going up-rally is just a pull back of the recent fall. Please note that in the weak market these up rally could end abruptly, therefore it is suggested to avoid long call. However day trader can try both long and short call depending on the price movement and 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.