Technical Analyst, Hitendra Vasudeo:
The Sensex posted a strong positive candle and removed the sustainability issue that was hovering in our minds. A trading breakout and close above the previous week's high of 16669 was witnessed that will enable the Sensex to test the range of 17276-17790. And when the Sensex hits the higher range once again, the sustainability issue crop up.
Last week, the Sensex opened at 16438.45 and maintained the same as the low for the week. Further, it moved higher to 17097.71 and closed at 16994.49 and thereby showed a net rise of 564 points on a week-to-week basis.
Support will be at 16843-16429-
The market reacted favourably to the Budget and the positive sentiment was visible among the investing and trading community in the post budget week. But equally important henceforth will be the low of the budget week, which is at 16167 and can be rounded off to 16100.
Trading movement and stock wise momentum was witnessed last week. The same may continue provided the supports are held well. Volatility from the resistance level cannot be ruled out.
The Broad Market
BSE Small Cap did not violate the support of 7926. Therefore, support continues at 7926. Resistance is at 8690 and 9120. Resistance of 8690 will be tested. A breakout above 9120 can trigger the rally in large caps as well.
BSE Mid Cap strength was better than BSE Small Cap. The support of 6276 was not violated. Resistance will be between of 6870-7153 and a breakout above 7153 can trigger a rally.
Conclusion
Breakout and close above 17800 can only make the Sensex bullish from hereon and trap the bears. If the breakout and close above 17800 is not witnessed then a lower top probability is at current level or on rise to 17253 or 17509.
Strategy for the week
Exit long on rise to 17253 and 17509 as the opportunity arises. Keep stop loss of 16000 to hold long positions. Add long positions on rise and close above 17800.
Happy Trading,
United we grow!!!
No comments:
Post a Comment