Reliance in confluence of demand zones- Long OpportunityReliance is currently sitting in the weekly and daily demand zones, providing strong support.
weekly zone
Daily zone:
However, the price has yet to reach the 4-hour and 2-hour demand zones, which are located near the bottom of the weekly and daily zones, adding further strength to this area.
For an ideal long entry, wait for the price to touch the 4-hour and 2-hour demand zones, as this will reinforce the potential reversal. Once these zones are tested, a breakout above the key trendline could signal a bullish move. Monitor the trendline breakout as confirmation to take a long position.
Demand Zone
Nifty Intraday Levels | 16-OCT-2024This trading strategy focuses on scalping Nifty options based on institutional support and resistance zones and executing trades using order flow data. Here's a quick summary of the key points:
1️⃣ Zones to Focus on:
👉Green Zone: Represents institutional support.
👉Red Zone: Indicates institutional resistance.
👉Gap Between Zones: Typically ranges from 100-200 points.
👉Zone Creation: Uses pivot points and Fibonacci levels.
👉Price Action: An advanced version for refined entries and exits.
👉Chart Reference: Trades are executed based on the Nifty futures chart.
2️⃣ Trade Execution:
👉Order Flow Data: Trades are triggered by tracking the market's order flow.
👉Timeframes: Focus on the 1-minute and 5-minute charts for quick scalps.
👉Risk-Reward Ratio: Strict 1:2 (Risk 1 to gain 2).
👉Strike Price: Target at-the-money (ATM) or slightly in-the-money (ITM) options.
👉Position Sizing: Customize based on personal risk tolerance.
3️⃣ House Rules:
👉Sharp Execution: Be ready at 9:15 AM for market open.
👉Risk Management: Always a priority.
👉Quick Trades: Fast execution "morning breakfast".
👉Strict Stop-Loss: Set at 10 points to limit losses.
This method is well-structured for traders who prioritize risk management and quick scalping opportunities in the Nifty market.
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Reliance Industries: Opportunity in a Demand Zone ConfluenceReliance Industries Limited (RIL), one of India’s largest conglomerates, has recently experienced a drop in its share price. In the second quarter of FY25, the company reported a 5% decline in consolidated net profit, down to Rs 16,563 crore. While this has weighed on the stock price, it also presents a buying opportunity for traders.
Chart Analysis: A Confluence of Demand Zones
Let’s take a closer look at the technical picture. If you analyze the weekly chart of Reliance Industries, you’ll notice that the stock is currently trading in a demand zone . This zone is an area on the chart where there is strong buying interest, and it could potentially support the price, leading to a bounce.
What makes this setup more attractive is that the stock is also sitting in a daily demand zone , creating a confluence between the two timeframes. Confluences like this increase the probability of a successful trade since multiple factors align in the same direction.
Entry 1: Reversal Candlestick Pattern at the First Demand Zone
The first potential entry point for a trade comes from the RBR (Rally-Base-Rally) zone , which is the current demand zone on the weekly chart. If you observe a reversal candlestick pattern , this could signal the start of a move higher.
Wait for a confirmation of the reversal pattern before entering the trade. This pattern could serve as a signal that the market is ready to rally from the current demand zone. Let’s call this Entry 1 .
Entry 2: The Second Demand Zone - A Stronger Opportunity
If the price continues to drop, there’s a second RBR demand zone below the current one, and this could provide an even better buying opportunity. What makes this zone particularly strong is that it coincides with a previous resistance level, which could now act as support again .
This is known as the Act of Polarity , where old resistance becomes new support & this is also confluence. Entry 2 is compelling because the stock had previously been in a tight consolidation, and this demand zone formed as the price broke out of that consolidation. Now, as the price approaches this zone again, it’s a high-probability area for a bounce.
For Entry 2, you can place a stop-loss just below the demand zone, allowing a small buffer. This will protect your trade if the price falls further. Your first target could be the daily supply zone around 2928.
Despite recent setbacks, Reliance remains one of the strongest companies in India, with diversified business interests across sectors like telecom, retail, and energy. The current pullback is more of a short-term correction rather than a sign of fundamental weakness.
The confluence of demand zones on the weekly and daily charts offers traders a high-probability setup in Reliance Industries. While waiting for a reversal candlestick pattern at the first demand zone is a more conservative approach, the second demand zone presents a stronger opportunity due to confluence of its location at a previous resistance level, which now acts as support. Proper risk management with a stop-loss below the second demand zone ensures that traders are protected if the price drops further.
Lastly, thank you for your support, your likes & comments.
Disclaimer: This analysis is purely for educational purposes and is not intended as a trading or investment recommendation. I am not a SEBI registered analyst.
Bharat Forge | Rising from Demand Zone ⭕️ Swing Trading opportunity: Price Action Analysis Alert !!!⭕️
💡FNO Stocks Trading📉📈📊
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ZydusLife | Looking bullish ⭕️ Swing Trading opportunity: Price Action Analysis Alert !!!⭕️
💡FNO Stocks Trading📉📈📊
✅Check out my TradingView profile to see how we analyze charts and execute trades.
✅We can't conduct a thorough analysis in such a short span of time. We need to review it, post our findings, and then take action.
🙋♀️🙋♂️If you have any questions about this stock, feel free to reach out to me.
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Force Motors: A Technical and Fundamental Play in Demand ZoneWelcome traders! Today, we're diving deep into Force Motors, a stock currently sitting in a significant demand zone. Let’s break down the technical and fundamental aspects that make this stock an interesting opportunity.
Monthly and Weekly Demand Zones:
When we look at the monthly chart , Force Motors is currently trading in a strong Rally Base Rally (RBR) demand zone . This zone is a crucial area where price often finds support and can lead to a bounce back.
If we zoom into the weekly chart , we notice that the price has already reacted from a weekly RBR demand zone nested inside the monthly zone. Last week’s candle formation is notable because it’s an absorption candle , indicating that the selling pressure has been taken over by buyers.
📊 Volume Analysis:
The presence of large green volume bars compared to smaller red bars further suggests that the selling is minimal, showing a clear sign of strength.
The price is currently in a healthy pullback from its all-time high, which often provides a great buying opportunity for savvy traders.
🧠 Fundamental Strength: A Company on the Rise 💪
Force Motors is not just looking good technically; its fundamentals are also rock solid. The company's Piotroski F-score is 9, indicating strong financial health. This score assesses several financial criteria, including profitability, leverage, and operating efficiency, confirming that the company is fundamentally sound.
Recent quarterly (June 2024) numbers are impressive:
Net Sales: Rs 1,884.90 crore in June 2024, up 26.71% from June 2023.
Net Profit: Rs. 115.70 crore in June 2024, up 68.76% from June 2023.
EBITDA: Rs. 264.13 crore, up 37.52% from June 2023.
EPS: Increased to Rs. 87.81 from Rs. 52.04 in June 2023.
These numbers reflect not just growth but also consistent performance. Such fundamentals often provide a safety net for technical setups, adding an extra layer of confidence.
🔍 Institutional Interest: The Big Players Are Watching 👀
We always like to see where institutional money is flowing because it often moves the market. For Force Motors, the institutional investment data is promising:
FII/FPI holdings have increased from 6.34% to 7.78% in the June 2024 quarter.
Number of FII/FPI investors rose from 124 to 160.
Institutional Investors’ holdings jumped from 7.20% to 8.80%.
This surge in institutional interest tells us that the big players are finding value in Force Motors at these levels. Their buying can lead to further price appreciation as they tend to have a long-term view.
The current price is trading in area where institutions have increased their stakes most probably, indicating that these monthly and weekly demand zones are genuine footprints of smart money. This means we are aligning our trades with institutional players. The likelihood of the price falling from this area is quite low because institutions typically protect their positions. These demand zones suggest that there may be pending or unfilled buy orders from smart money, so entering a trade here means we are trading alongside these big players.
💡 Trade Setup: A Clear Plan for Traders 🗺️
Based on the technical and fundamental analysis, here’s a potential trade setup:
Entry: You can consider buying at the current price level, which is within the strong demand zone.
Stop Loss: Place your SL below the demand zone or, if you don't want to take big risk, just keep SL below last week’s candle low with a buffer.
Target: Aim for at least a 1:2 risk-reward ratio. You can ride the rally by trailing your stop-loss, ensuring you lock in gains as the stock moves in your favor
⚠️ A Word of Caution: Always Manage Your Risk
Trading is about probabilities, not certainties. Even the best setups can fail, so always manage your risk. This analysis is for educational purposes only. I'm not a SEBI registered analyst, and you should do your own research before making any trading decisions.
🔥 Keep Trading and Keep Growing! 📈💪
"Success in trading is not about being right, but about managing your risk and emotions." 💡
Thank you for your support, likes, and comments. Feel free to ask any questions! Your interaction keeps me motivated to share more valuable insights.
Happy trading, and may the markets be ever in your favor! 🎯🚀
LONG TERM INVESTMENT PICK - BANDHAN BANK - READY TO TAKE OFF ?SYMBOL - BANDHANBNK
Incorporated in 2014, Bandhan Bank is a commercial bank focused on serving underbanked and underpenetrated markets in India. The company has a PAN-India presence and offers a wide range of banking products & services and asset & liability products and services designed for micro banking and general banking.
This company is fundamentally good. having 32,800 cr. market cap, Bandhan Bank is currently trading 11 P/E.
This stock is in a downtrend since a long time. Currently trading at 200 which is a long term strong demand zone.
Long positions can be made at CMP 200 with stoploss of 170.
I believe this stock can be next multibagger & this is a great investment pick at current levels.
Targets can be 600 & 700 which is ATH & beyond.
Disclaimer - I have invested my investment allocation today. Do not consider this as buy/sell recommendation. I'm sharing my analysis & my investment position. You can track it for educational purposes. Thanks!
AUBANK - LONG TERM INVESTMENT CANDIDATE ?AU Small Finance Bank Limited is engaged in providing a range of banking and financial services including retail banking, wholesale banking, treasury operations and other services.
CMP - 565
AUBANK is currently trading in a support zone & looking good for long term investing perspective. I am allocating my investment allocation at CMP.
Targets I'm expecting are 785 & 850 which is 40-48% upside from current level.
My SL would be 500.
Disclaimer - Do not consider this as a buy/sell recommendation. I'm sharing my analysis & my investment position. You can track it for educational purposes. Thanks!
Tata Motors - Poised for a Powerful UpsurgeTata Motors is presenting an exciting setup, and all signs point to a potential strong move upwards, thanks to multiple demand zones aligning perfectly across higher time frames.
Monthly Demand Zone : Tata Motors has firmly entered a high-confluence area, with the monthly and daily demand zones acting as a solid foundation. These zones represent areas where big buyers historically step in, making it a strong base for a bullish reversal. The confluence between the larger time frames adds even more strength to this zone, suggesting a high probability of upward momentum.
Monthly Demand Zone
Daily Demand Zone Reactivity: On the daily chart, the price dipped into a daily demand zone, triggering a sharp bounce. The immediate reaction from buyers shows the validity of this zone, with bulls actively defending it. This reactivity adds further confidence that Tata Motors may have found a strong floor.( visible in lower time frame Charts)
Daily Demand Zone:
Lower time frame Reaction:
Higher Timeframe Trendline Support : Adding more weight to this bullish setup is a long-term trendline support, which has acted as a reliable level for price to bounce from historically. This trendline is now aligning with the demand zones, creating a super-strong support structure. It’s not just the demand zones that are holding; the higher timeframe trendline is also providing a solid foundation for the price to launch upward.
Trend Line support
Gap-Filling Opportunity: There’s also a gap in price that remains unfilled, creating a target area for bulls to aim for. Gaps often act like magnets for price, and with the support from both the demand zones and the trendline, Tata Motors looks set to make its way upward to close this gap
With Tata Motors sitting in a confluence of monthly and daily demand zones, supported by a long-term trendline and a gap-filling opportunity, the setup is ripe for a significant upside move. The alignment of demand zones across multiple timeframes combined with the trendline support creates a compelling case for a bullish rally. This is one to watch for a potential strong uptrend!
Dr. Reddy's : Triangle Pattern Formation in Demand ZonesDr. Reddy's stock is currently forming a descending triangle pattern on the 2-hour, 4-hour, and daily demand Zones. This pattern and its positioning within demand zones are crucial for potential future movements.
Key Observations:
Triangle Pattern : The stock is creating a descending triangle pattern, characterized by a series of lower highs and a horizontal support level. This pattern often precedes a breakout or breakdown, depending on the direction of the price action.
Demand Zones: The triangle pattern is developing within established demand zones on all three time frames. These zones are areas where buying interest has been strong in the past, which may influence the pattern's outcome on the upside.
Implications:
Potential Breakout : Watch for a breakout above the upper trendline signaling the start of a new trend.
Support Levels: The demand zones within the triangle may act as crucial support levels. A bounce from these levels could lead to a trend reversal.
Key Levels:
Demand Zones:
Daily:
4Hour:
2Hour:
Pattern:
Lets monitor the price action closely as the stock approaches the apex of the triangle pattern for potential trading opportunities when it breaks out
Vodafone in 4H & 2H Demand Zones: Potential Reversal Ahead?Vodafone is currently consolidating in both the 4-hour and 2-hour demand zones , coupled with daily trendline support , indicating a strong potential for a bullish reversal. This price consolidation suggests potential accumulation and could lead to a bullish reversal in the near future. Also convergence of support levels across multiple time frames adds confidence to a possible bounce in price action. There should be a lookout for a potential bullish breakout, especially considering the strong confluence of support levels.
Key Levels:
Daily Trendline Support:
4H Demand Zone:
2H Demand Zone:
Breakout Possibility
The price is consolidating within the demand zones in both the 4H and 2H time frames, while maintaining contact with a daily trendline support. This consolidation could signal an accumulation phase, where the market is indecisive before a breakout. Once the price has broken out of the range (i.e resistance @ 13.77), The target could be the next supply zone around 15. There is also a small gap filling opportunity as well
POONAWALLA reversed from a strong demand zoneApprox. 340-355 is a strong demand zone and from there the price took a reversal. Also MACD has given a positive crossover.
T1- 450, T2- 500 and T3- 568. Sl- 340 and trail as price goes up.
Safe traders can book profit on hitting T1 or T2 as per your risk appetite. Risk takers can go till T3 at max.
Note:- This is only for educational purpose and not a recommendation.
Unlocking Potential: ELGIEQUIP's Bullish Reversal Signal
In the world of trading, spotting key opportunities can make a significant difference. Today, we'll dive into an exciting analysis of ELGIEQUIP, focusing on its current position and what it signals for future price movement.
Key Technical Analysis
Daily Demand Zone 📉: ELGIEQUIP has recently reached a significant daily demand zone characterized as a Rally Base Rally (RBR) .
SMA 200 Support 📊: The stock is currently trading around its daily 200-SMA (Simple Moving Average). This key moving average often serves as a strong support level.
Polarity Action 🔄: The current level of ELGIEQUIP was previously a resistance area. According to the principle of polarity, resistance turning into support can be a powerful signal. This transformation adds to the strength of the current support zone.
Up Sloping Trendline 📈: ELGIEQUIP is also at an up-sloping trendline where the price has historically found support. This trendline further reinforces the potential for a bullish reversal.
Volume Analysis 📉: A critical observation is the declining volume on both daily and weekly timeframes. Lower volume during a downtrend often suggests reduced selling interest, hinting at a potential price bounce.
Trade Setup and Strategy
Given these factors, ELGIEQUIP presents a low-risk, high-reward trade opportunity. The confluence of demand zone support, SMA 200, trendline support, and low selling volume suggests a strong potential for a bullish reversal. Traders can aim for a minimum target of 1:2 reward-to-risk ratio, making this setup an attractive proposition.
Conclusion
In summary, ELGIEQUIP's technical setup aligns well with a potential bullish reversal. Remember, trading is about managing risk and seizing opportunities wisely. 🚀
Thank you for your support . Feel free to ask if you have questions.
“Success in trading comes from consistent discipline and strategic planning.” This analysis is for educational purposes only and is not a recommendation. I am not a SEBI registered analyst.
BANKNIFTY IMPORTANT LEVELS FOR TOMORROW, 7TH AUGUST NSE:BANKNIFTY ANALYSIS FOR TOMORROW 🔺
❇️ IMPORTANT LEVELS 🚀
❇️ Support: 49750-49500-49154.
❇️ Resistance : 50214-50431-50800-51310
👉🏻 PURPLE LINE is a key level, above buying, Below selling.
👉🏻 YESTERDAY'S CLOSING IS IMPORTANT.
👉🏻 @thetradeforecast 🇮🇳
BANKNIFTY IMPORTANT LEVELS FOR TOMORROW, 6TH AUGUST NSE:BANKNIFTY ANALYSIS FOR TOMORROW 🔺
❇️ IMPORTANT LEVELS 🚀
❇️ Support: 49830-49720-49590-49080-48840-48080-47285
❇️ Resistance : 50200-50340-50580.
👉🏻 PURPLE LINE is a key level, above buying, Below selling.
👉🏻 Expecting A FALL from here.. due to world war 3, news and actions.
👉🏻 YESTERDAY'S LOW IS IMPORTANT (49721)
👉🏻 @thetradeforecast 🇮🇳
Reliance Industries Approaching Key Demand ZoneReliance Industries ( NSE:RELIANCE ) is approaching a significant daily demand zone. This demand zone is noteworthy due to its historical impact: following its formation, Reliance has broken through previous resistance levels and reached an all-time high.
Key Observations:
Strong Demand Zone: The current demand zone has demonstrated substantial strength in the past. Its formation preceded a major breakout to new all-time highs, highlighting its robustness.
Breakout Confirmation: After this demand zone formed, Reliance surpassed its previous resistance levels, underscoring the demand zone’s significance in driving the upward momentum.
Opportunity: Given the strength of this demand zone, the current price level presents a potential high-reward trading opportunity. Entering trades at this demand zone could offer an advantageous risk-reward ratio.
Disclaimer: This analysis is for informational purposes only and does not constitute trading advice. Always conduct your own research and consult with a financial advisor before making investment decisions.
BANKNIFTY IMPORTANT LEVELS FOR A WEEK, 5TH AUGUST NSE:BANKNIFTY ANALYSIS FOR A WEEK 🔺
❇️ IMPORTANT LEVELS 🚀
❇️ Support: 51200-50960-50720-50620-50480-50300-50120
❇️ Resistance : 51400-51630-51800-52414
👉🏻 Purple line is a key level, above buying, Below selling.
👉🏻 Expecting A FALL from here.. due to world war 3 news and actions. Not predicting CRASH.
👉🏻 @thetradeforecast 🇮🇳