Volatility to continue: Hitendra Vasudeo

Technical Analyst, Hitendra Vasudeo:

Last week, the Sensex opened at 17531.47, attained a high at 17687.01 and fell to a low of 17136.50 before it finally closed the week at 17361.74 and thereby showed a net fall of 104 points on a week-to-week basis.

The range bound volatility between 18100-17000 was seen as expected. In the strategy for the week, we had indicated to buy at 17248. Last week, the Sensex first made a low of 17211 and then moved up to 17687. It fell back down to 17136. Traders got some trading opportunity to benefit. The stop loss of 17000 was not violated.

Nothing much has changed in terms of the view. Therefore, volatility is likely to continue unless a slide below 17000 is witnessed. On a fall and close below 17000 expect the slide to continue towards 16788-16659.

Resistance will be at 17687 and 18040.

Conclusion

Volatility to continue.

Strategy for the week

Hold long positions with a stop loss of 17000. Exit long on rise to 17653-18204.  Re-enter long on close above 18100. Sell on fall below 17000 with the high of the day as stop loss or 17400, whichever is higher at the point of breakdown.