Pull-back may get extended: Hitendra Vasudeo

Technical Analyst, Hitendra Vasudeo:

Last week, the Sensex opened at 17761.70, attained a low at 17665.89 and moved up to 18423.06 before it finally closed the week at 18289 and thereby showed a net rise of 540 points on a week-to-week basis.

The expectation was that the retracement level of the fall from 21108 to 15135 will be tested. The high registered last week was 18423 against the retracement levels of 18122 and 18827.

The resistance of 17910 was crossed and 18122 was also crossed.  Expect the Sensex to move towards 19131, which is the next lower top followed by 19811. Support will be at 17890-17500. A fall and close below 17500 may terminate and puncture the rise for a near term correction.

Weekly Resistance will be at 18586 and 19343. Weekly support will be at 18126-17829-17500.

The 61.8%, 78.6% and 88.6% retracement levels are placed at 18827, 19831 and 20428. The current rise may get terminated at either of these retracement levels or on fall and close below 17500.

Conclusion

The pullback may get extended towards 18827 or higher.

Strategy for the week

Hold long positions with a stop loss of 17500.