Last week, the BSE Sensex opened at 18760, attained a low at
18550 and moved to a high of 18870 before it closed the week at
18763and thereby showed a net rise of 9 points on a week-to-week
basis. Traders who are long may keep the stop loss of 18200 and those
who cannot take much risk can keep it at 18500. Buy on a breakout above
18910 with the low of the day as stop loss or 18500, whichever is lower.
Last week, the BSE Sensex opened at 18756.31, attained a low at
18552.68 and moved to a high of 18869.94 before it closed the week at
18762.74 and thereby showed a net rise of 9 points on a week-to-week
basis.
A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.
Support will be at 18552 and 18291. Fall below the support level may show near-term sideways movement or minor correction or consolidation above 18200 before making an attempt to move higher above 18900.
The 61.8% retracement level of the fall from 21108 to 15135 is placed at 18815. The high registered last week was 18870 and formed a doji ,which suggests that a momentary halt to the rise could be seen unless another sharp rise and close above 18910 is witnessed.
Weekly resistance will be at 18904 and 19221. Weekly support will be at 18728, 18586, 18552 and 18291.
The 100% projection is at 19129 and the important lower tops from the peak of 21108 are 19131, 19811 and 20664.
On a further rise above 18910, expect the rise towards 19129-19221. The upper channel line for the larger degree Wave B is 19332. Wave c of Wave B may end at the current level or on rise to 19129-19221-19332. In the event of a vertical rise above the upper channel a rally towards the peak could be seen with step by step resistance coming from lower tops. Later, we may look at 78.6% and 88.6% retracement levels which will be at 19811 and 20452.
Initial task for the Sensex is to survive above 18200.
BSE Mid Cap Index
Resistance will be at 6695. On a further sustained rise and close above 6695, expect the rally to continue towards 6900 at least and to an outer extent to 7500. The projection targets are 6900 and 7500.
The retracement levels of the fall from November 2010 high of 8791 to a fall of 5073 in December 2011 are placed at 6907 and 7370. These are 50% and 61.8% retracement levels.
The 50% is coinciding with 61.8% projection which is at 6900. Till 6300 is not violated strongly, the broad market bias may remain to buy selective stocks on decline. This may be the time to look for fundamentally genuine stocks to buy on decline for good returns in the medium-term.
Conclusion
Broadly, it looks that 18200 is important to hold the current uptrend and must sustain above 18900 to keep the positive momentum going on weekly charts.
Strategy for the week
Traders who are long may keep the stop loss of 18200 and those who cannot take much risk can keep it at 18500. Buy on a breakout above 18910 with the low of the day as stop loss or 18500, whichever is lower.
A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.
Support will be at 18552 and 18291. Fall below the support level may show near-term sideways movement or minor correction or consolidation above 18200 before making an attempt to move higher above 18900.
The 61.8% retracement level of the fall from 21108 to 15135 is placed at 18815. The high registered last week was 18870 and formed a doji ,which suggests that a momentary halt to the rise could be seen unless another sharp rise and close above 18910 is witnessed.
Weekly resistance will be at 18904 and 19221. Weekly support will be at 18728, 18586, 18552 and 18291.
The 100% projection is at 19129 and the important lower tops from the peak of 21108 are 19131, 19811 and 20664.
On a further rise above 18910, expect the rise towards 19129-19221. The upper channel line for the larger degree Wave B is 19332. Wave c of Wave B may end at the current level or on rise to 19129-19221-19332. In the event of a vertical rise above the upper channel a rally towards the peak could be seen with step by step resistance coming from lower tops. Later, we may look at 78.6% and 88.6% retracement levels which will be at 19811 and 20452.
Initial task for the Sensex is to survive above 18200.
BSE Mid Cap Index
Resistance will be at 6695. On a further sustained rise and close above 6695, expect the rally to continue towards 6900 at least and to an outer extent to 7500. The projection targets are 6900 and 7500.
The retracement levels of the fall from November 2010 high of 8791 to a fall of 5073 in December 2011 are placed at 6907 and 7370. These are 50% and 61.8% retracement levels.
The 50% is coinciding with 61.8% projection which is at 6900. Till 6300 is not violated strongly, the broad market bias may remain to buy selective stocks on decline. This may be the time to look for fundamentally genuine stocks to buy on decline for good returns in the medium-term.
Conclusion
Broadly, it looks that 18200 is important to hold the current uptrend and must sustain above 18900 to keep the positive momentum going on weekly charts.
Strategy for the week
Traders who are long may keep the stop loss of 18200 and those who cannot take much risk can keep it at 18500. Buy on a breakout above 18910 with the low of the day as stop loss or 18500, whichever is lower.
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