BSE-Sensex closed at 26987.46on
6-1-2015
SUPPORT: - 26845 / 26469.42
/ 26220 / 25910.77 / 25460 / 25232.
RESISTANCE: - 27092
/ 27257 / 27355 / 27485 / 27500 / 27851.10 /28064.49.
(Figures in bold are important)
Sensex opened with a gap down at
27694.23 and made a high of 27698.93 and thereafter it relentlessly went down
and made a low of 26937.06 before closing the day near the low at 26987.46.It
went down by a whopping more than 850 points on closing basis, the fall was devastating and it has broken the on
-going momentum for sure, it has also broken its all short term moving averages
decisively which is a bad sign, furthermore some technical parameter suggest
that it may be heading for much lower level in coming days and will break the
recent bottom of 26469.42 for sure , therefore
long call should be completely avoided
till it moves above 27500 and stays or give ample indication of correction
completion .I would therefore suggest to try short call on the rise with a stop
loss of above 27500,one can try short call below 26930 also with a stop loss of
27000 for a target of 26845 & 26469.42 on 7-1-2015 and below 27266.49 with
a stop loss of above 27300 for the entire remaining week ending on 9-1-15.
It is important to mention here that
it is pretty close to it long term moving averages and the range for it is
between 26804—25476(it changes every day),if it breaks even the upper band of
the range i.e 26804 that will be the first sign of threat to the long term up
trend and if it moves below 25476 mark
and stays then the up- trend would be in real danger, So if the up- trend has
to continue then it cannot remain even below 26804 mark for a longer period
therefore one should start building long position in a staggered manner as soon
as sensex falls within this range with a stop loss below 25100.
REMARK:- :- Long term up trend is still intact. Today’s move has
broken the on- going momentum therefore long trade is completely ruled out till
bottom formation sign emerges, instead short call should be tried on the rise
or below 26930 on 7-1-15 and below 27266.49 for the entire remaining
week with a proper stop loss as 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.


