Sensex recently gave a fresh breakout around 17350. So ideally index should find good support around the breakout point which comes to 17250-17320 now for the next few sessions.
On the downside we have not seen any moves retrace more then 61% of late so we may expect 17k zones to hold up.
The next cluster of support comes around 16800-17k which is fibonacci and trendline ( blue ) .
Over all we see a major channel being made which breaks only below 16600. Till that level holds on closing basis the market could also turn up to the higher end of the channel which is 18500 + .We maintain this view.
Its easier for us as we bought around 16600-17k ( leveraged before now zero leverage ) and particular stocks have gained a lot so even if markets do break 16.6k we would be able to digest the stoploss hit
Although the apprehensions and caution signals are being heard all around but for people who are disciplined and ready to cut on stoplosses should trail and ride the current till markets show otherwise !!!
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