Last week, the Sensex opened at 8707.35 attained a low at 8619.22 and moved up to register a weekly high at 8998.31 before it closed the week at 8891.61 and thereby showed a net rise of 48 points on a week-to-week basis.

We had indicated of support at 8631, which was an important level. The low registered was 8619 for a few minutes whereafter it recovered quickly above the support of 8631 and paid the due respect to it.

There will be very crucial support in the range of 8631-8619. A fall below it can take the Sensex crashing down. Till the Sensex is above 8631, we will see up and down movements with volatility in the band of 9725-8600.

A pull-back of the fall from 9725 to 8619 is in existence. The pull-back levels are placed at 9045-9171-9302.

Weekly resistance will be at 9053 and 9433. The first resistance coincides with the retracement of 9045, which will act as an important resistance.

On further fall and close below 8600, the slide can get sharper to 8295 at least to begin with.

Yearly Outlook for 2009

As per the yearly levels, yearly level 2 will be at 4294 and yearly centre point will be at 12850. The yearly level 3 will be at 18000.

Conclusion

Pull-back before a further breakdown is possible.

Strategy for the week

Traders can use the rise to the pull-back to exit long and to sell.

source: moneycontrol

Tags: calls, daytrading, free calls, intraday, tips

Similar Posts:

• Sensex 9300 holds the key: Vasudeo
• Pull back likely
• India Infoline puts SELL on Bhel
• Nifty review/update for the week 27th to 30th January 2009.
• Pull-back rally intensifies; Sensex up over 6%