Sensex Resistance will be at 20481-20513. Weekly resistance will be at 20583-21100. Weekly support will be at 20066-19549. Traders short can keep the stop loss at 20600. Cover short positions at 20273-19900. Sell on a fall below 19900 with the high of the week as stop loss or 20600, whichever is higher. Sell on rise to 20899-21133 with a stop loss of 20200. Minor pullback seen unless 19900 stands violated
Previous week, the BSE Sensex opened with a gap down in relation to the previous week’s closing of 20513.85. It opened at 20479.03 and maintained the high for the week at 20489.35. The fall to 19963.11 marked the low for the week while it finally closed the week at 20376.56 and thereby showed a net fall of 137 points on a week-to-week basis.
The support of 20137 was tested and 20100 were violated but it closed the week at 20376.56. The retracement of the last rally from 17448 to 21483 is placed at 19947, 19448 and 18985. The low of last week at 19963 was very near the 38.2 percent retracement level of 19947. We, therefore, assume that the first retracement was tested. A pullback of the fall from 21483 to 19963 is likely to be seen before putting the pressure back on 19963.
Further weakness or correction will continue on a fall and close below 19900. If that happens, then expect 19448 and 18985 to be tested.
Resistance will be at 20481-20513. Weekly resistance will be at 20583-21100. Weekly support will be at 20066-19549. The pullback retracement levels are placed at 20515, 29686 and 20903. For the near term to short term, a pullback to retracement can be seen. If a stronger rise and close above 21100 happens, a rally towards the top may be seen.
On the daily chart, we have gaps that can provide resistance. The gaps are at 20572-20647 and 20899-21133. These gaps will be tested and can also offer resistance. The pullback to resistance levels, retracement and gaps can create a lower top and could subsequently test back the low of 19900.
Alternatively, if there is a fall immediately below 19900, then expect it to test the 19448-18985 range.
BSE Mid Cap Index
Further correction can be seen below 6180. Expect a pullback first to the levels of 6420-6495-6570.
BSE Small Cap Index
Further correction can be seen below 6164. If that happens, then expect the range of 5980-5880-5688. If the support of 6164 is not violated, then a pullback to 6374 to 6508 could be seen before putting pressure back on 6164. If the slide continues below 6164 then anyway the trend is down.
Retracement of the last rise from 9535 to 13928 was seen. The 50 percent-61.8 percent range is at 11712-11237. The low registered last week was 11373. Expect 11979-12359-12645 to be tested. A pullback can be seen in the near term before putting pressure on the support of 11373.
Strategy for the week For Sensex
Traders short can keep the stop loss at 20600. Cover short positions at 20273-19900. Sell on a fall below 19900 with the high of the week as stop loss or 20600, whichever is higher. Sell on rise to 20899-21133 with a stop loss of 20200
Nifty Weekly Pivot at 6022 is first support. Now 200DMA is at 5977. So the level is 5955-5977 is a Major Support. Below 5955 Bears can touch 5733-5622. On Weekly Chart Trend Line Support is at 5733. The long term trend line in the Monthly chart is now at 5622.
NIFTY FUT FEB BUY ON DIPS NEAR 6015 SL 5979 TGT 6095
BANK NIFTY FEB FUT BUY ON DIPS NEAR 9930 SL 9765 TGT 10300