Grindwell Norton - Powerful RetestNSE:GRINDWELL Made Beautiful Chart Structure today before Q4 Results with Good Price and Volume action.
Price Action Analysis:
Base Formation and Breakout: a critical technical development with today's powerful price surge:
1. Base Structure: Grindwell Norton formed a well-defined horizontal base in the ₹1,750-1,800 range (highlighted in green), which has served as strong resistance since January 2025. This level has been tested multiple times and rejected, creating a clear technical ceiling.
2. Today's Retest: With a massive 14.67% gain, the stock has finally retested through this stubborn resistance zone after multiple failed attempts. This represents a significant technical event after approximately 4 months of price struggle at this level with Volumes.
3. Prior Downtrend Context: The Retest is especially meaningful as it comes after a prolonged downtrend from the ₹2,300 level in late 2024, indicating a potential trend reversal.
Volume Analysis:
The volume characteristics strongly support the Retest breakout's validity:
- Today's volume at 79.44K shares is substantially higher than normal trading activity
- The volume spike (visible as a large green bar at the bottom) coincides perfectly with the price breakout
- Prior resistance tests showed diminishing volume, indicating sellers were becoming exhausted
- The volume pattern shows classic accumulation characteristics before the breakout
Key Support and Resistance Levels:
Key Resistance Levels
1. Immediate Resistance: ₹1,900-1,950 (prior consolidation zone)
2. Intermediate Resistance: ₹2,100 (previous reaction high)
3. Major Resistance: ₹2,300 (52-week high)
Key Support Levels
1. New Support: ₹1,750-1,800 (previous resistance may likely to act as support - this is critical)
2. Secondary Support: ₹1,550-1,600 (consolidation zone from April)
3. Strong Support: ₹1,400 (major reaction low from February/March)
Technical Pattern Recognition:
The chart demonstrates a classic "break and retest" pattern:
- Initial drop below the ₹1,800 level in early 2025
- Multiple attempts to reclaim this level
- Extended period of base-building and consolidation
- Final powerful Retest on exceptional volume
This pattern often precedes sustained upward movements, particularly when the Retest breakout occurs on high volume, as seen today.
Accumulation Indicators:
Several signs of institutional accumulation appear in the chart:
- Increasing volume on up days versus declining volume on down days
- Formation of higher lows since the March bottom
- Clear volume divergence during the April-May consolidation phase
- Today's massive volume spike suggests strong institutional buying
Technical Outlook:
The combination of a decisive breakout from a multi-month base coupled with exceptional volume support suggests the potential for continued upward momentum. The prior resistance level at ₹1,750-1,800 should now function as support in any pullbacks.
Traders should closely monitor whether the stock can maintain positions above the breakout level in subsequent sessions, as this will confirm the pattern's validity and potential for a new uptrend toward the ₹2,000-2,100 range.
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Disclaimer: "I am not SEBI REGISTERED RESEARCH ANALYST AND INVESTMENT ADVISER."
This analysis is intended solely for informational and educational purposes and should not be interpreted as financial advice. It is advisable to consult a qualified financial advisor or conduct thorough research before making investment decisions.
