Price Action in the financial market is a reflection of human nature, and human nature remains more or less constant. 1. MRF has formed a falling wedge. A falling Wedge represents a temporary interruption of a rising trend. 2. Falling Wedge has given breakout with very high volume. 3. Important thing that needs to notice here that where the falling wedge has given breakout! if you look closely price has given breakout at a very important juncture. where support zone, 200 DEMA, and 0.5 Fibonacci level are all meeting together at one same point. 4. Stocks as formed Bullish Engulfing pattern. The Engulfing pattern is a major reversal signal. 5. Volume is rising, and the delivery percentage also increases, which is a good sign. A high delivery percentage suggests that investors are showing interest in these stocks. 6.Based on the open interest future percentage, an increase in open interest, along with an increase in price, mostly indicates a build-up of long positions. 7. Trend is Your friend. one of the most reliable trend indicators is MACD which is giving a buy signal. MACD Level (12, 26) −1649.92 Buy.
@Harshit_bhadoriya, on a second note, after observing charts on weekly timeframe it has been observed that stock just reverted from resistant line of 81699, and there was an gap of 80980 (created on 16 april 2021) it moved to fill that gap. and support on weekly timeframe on long term is around 63000 levels. unable to close obove 82306 on weekly closing may invalidate the LONG position on trade. Trade must be fruitful if closes above 82306 on weekly closing . thanks.
Harshit_bhadoriya
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@arun2404, strongly agreed with you. Even i will keep this point in observation. I would highly appreciate your observation.
Shashank0817
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I don't think its going to break 82k range, because of its position right now its previous high was in range of 80-82k and this now acts as resistance, Lets wait and watch. I have posted my views that's all ;)
Harshit_bhadoriya
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@Shashank0817, we all here for learning purpose here from each other. I agreed with you point as well.
mjsarma
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Mr. Harshit, I am new to trading. I bought 1 share at 91k 3 months back on someone's advise. your technical analysis is too complicated for me. can you pl. advise in laymans terms shoul i hold it long term or sell on the next raise and cut my losses. thanks and regards
Harshit_bhadoriya
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@mjsarma, This is my view, it can be right as well as wrong. I will give my best to explain you in layman language.
One thing always keep in mind forever.Market is made up from Human Psychology.
If market is rising someone is buying.
If market is falling someone is selling.
But retailer market participants like us can't move the market.
So if big up move, big players(FII&DII) are buying, If big down move, big players are selling.Market is this simple as. We made it complicated.
Question is this why or when someones buys or sells.
Answer of this questions is again hidden in human behavior and his psychology.
If something is good, people buy it.
If something is bad, people sell it.
Lets come to your question. What do you need to do with stock right now. Generally i avoid giving target price of stock. Because target of stock price no one know. We all assume the stock price target with the help of technical and fundamental analysis. Since we assume the price target that why we always use stoploss.
I am unable to advice you what you need to do now with this stock. Because of Tradingview and SEBI policies and their terms and condition .
But i will tell you, what i would have done if i would have been in this situation.
As par the technical analysis. Price moment is bullish.
From this price level.
By taking a strict stoploss of 75000. I would have taken long position for 1st target 85000 short term, 2nd target 90000 medium term, 3rd target 95000 long term.
Hope this will help you.
Thank You.
mjsarma
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@Harshit_bhadoriya, thank you Boss for taking time to explain to me. Thanks again
babuganesan
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@Harshit_bhadoriya, wow! man of patience. Loved it.
I don't know how you even took an initiate to give that brief on the basics of price movement for a post that was suppose to be technical.
That answers a lot of other questions that I had in my head? Good work. Keep it up always.
Cheers!