Identify Strong Supply Zones & Set Targets with RRR Logic📈HERO MOTOCORP LTD | 15-Min Chart Analysis
📆Date: June 3, 2025
Ticker: NSE:HEROMOTOCO
Price: ₹4,205.00
Chart Overview:
The chart shows a clear intraday rejection from a key supply zone followed by strong bearish price action. A decisive move below ₹4,220 indicates supply pressure.
Two critical supply zones are marked:
Possible Strong Supply Zone: 4225.30–4233.60 | SL above 4234
Possible Supply Zone: 4241–4247.20 | SL above 4248
Price is currently trading around ₹4,205, just below these zones, signaling a potential continuation of the short-term bearish trend.
Supply Zone Breakdown:
🟥🟥 Strong Supply Zone (4225–4233):
Multiple wick rejections seen previously.
Ideal for aggressive short entries with tight SL above 4234.
🟥 Upper Supply Zone (4241–4247):
Acts as a secondary resistance.
Conservative short traders can consider this zone with SL above 4248.
How to Trade Supply & Demand Zones:
When to Enter (Short Trade from Supply Zone):
Wait for price to retest the supply zone.
Watch for bearish confirmation candles like shooting stars, bearish engulfing, or rejections with volume.
Enter short near the top of the supply zone.
Keep a tight stop-loss just above the zone.
Stop-Loss Placement:
For Strong Supply Zone: SL above ₹4234.
For Higher Supply Zone: SL above ₹4248.
Targets: Book profits at logical RRR levels (1:2 or 1:3 for high probability setups).
Why Use Risk-Reward?
Helps you define targets objectively.
Protects capital with fixed stop-loss logic.
Avoids emotional exits; everything is pre-planned.
⚠️ Risk Management Tip: Always trade with a clearly defined stop loss. Avoid entering positions impulsively. It is advisable to start with a smaller quantity and increase your exposure only if the price action confirms the continuation of the trend. Capital protection should always be the priority.
📢 Disclaimer
This content is created purely for educational and informational purposes. It is not intended as investment advice, stock recommendations, or trading tips. Trading and investing in the stock market involves risk. Please consult with a SEBI-registered financial advisor before making any investment decisions. The author/creator is not registered with SEBI and shall not be held responsible for any losses incurred based on this information. Always do your own research and use proper risk management.
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Heromotocoshort
Auto Index Nears Breakdown: Hero Motocorp a Top Short Pick◉ Auto Sector Overview NSE:CNXAUTO
● The auto sector has recently experienced significant selling pressure, driving the index to hover just above its key support level at 22,000.
● However, there are concerns that this support level may not hold for long, potentially leading to a breakdown and continuation of the downtrend.
In light of this scenario, short positions in select stocks within the sector could present a viable trading opportunity.
◉ Hero Motocorp Technical Analysis NSE:HEROMOTOCO
● On the weekly chart, Hero Motocorp has formed a Head & Shoulders pattern, a classic bearish reversal signal.
● The price has recently breached the neckline of this pattern, indicating a potential for further downside movement. This breach reinforces the bearish outlook for the stock.
◉ OI Data Analysis
● Open interest data shows a buildup of new short positions during recent trading sessions, further supporting the bearish sentiment.
● Additionally, the option chain data highlights a significant concentration of put writers at the 3900 level.
● With this level now breached, the stock is expected to maintain its negative momentum, potentially leading to further declines.
HEROMOTOCO Signaling Bearish Point Of ViewAfter years of rallying up, then it turns to a fall forming a double top pattern. When we draw from the high point to the low point using Fibonacci retracement, the 0.5 Fibonacci retracement level taken and continues the fall.
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