Support and Resistance
Stuck Between "A Rock & A Hard Place"Bharat Forge is a good example of several stocks in the Nifty 500 right now. The stock is stuck between former support that's been intact for nearly 6 years (355) and former resistance that's been intact for nearly 15 years (200).
As a market participant, it's difficult to bet on this type of stock longer-term in either direction as long as prices are between these two levels.
As a fresh short or someone liquidating longs, you don't want to be placing orders near 200 because the market's telling you there's still underlying demand there.
As a fresh long or someone liquidating shorts, you don't want to be placing orders near 355 because the market's telling you there's still overhead supply there.
As a result, you have this range develop that neither longs nor shorts want to bet against breaking. Why would anyone want to be the one to force it in either direction when the market punishes you for doing so?
People who are trading the range are being rewarded with gains, while those betting against it continuing are punished with losses.
And thus the range continues.
And it will continue until a large buyer or seller, an institution, puts enough supply or demand on the market to break the range. Once that happens, the positive feedback loop that's been in place will be broken and a new behavioral trend will manifest itself in the market.
So what's the best course of action for someone with a timeframe of several weeks to several months, or longer?
Wait. Let the institutions who set the trends show their hands and then we can position ourselves to ride along to profits with them.
In the meantime, trade the range if you'd like, but until prices break decisively in either direction and begin trending, there's no reason for us to be betting aggressively.
This is how we approach rangebound stocks for our timeframe, which looks out several weeks to months (or longer).
Bank Nifty Tested It's Major Supply Zone...
Today Bank Nifty tested its Short term Major Supply zone @ 21350-21750. This same Supply Zone is there on a daily and weekly chart.
On the downside, there is a minor support @ 20500 and demand zone @ 19700-19800.
I will plan my trade if Bank Nifty will sustain above 21350.
Nifty closed in the Supply Zone.Which will be the next Zone ?
Nifty closed in the supply zone of 9490-9580. On the downside demand zone @ 9230-9250.
Today as I have mentioned in the telgram group that I am not expecting nifty closing below 9490. The reason is: 9490-9580 is a supply zone on a daily chart and 9490-9735 is a supply zone on a weekly chart. So 9490 is a very crucial level in a higher time frame. I am expecting a weekly candle close in 9490-9735.
If Nifty will manage to sustain above 9500 then it may face 1st resistance @ 9580. Once It will sustain above this level than on the hourly and daily chart next major supply zone @ 9990-10090 but it will face one more resistance @ 9735 range which is an upper level of supply zone on the weekly chart.
From the last few days I was in favor of taking a position in option writing instead of FUT because Nifty strength was missing and I was not able to find decent technical stop loss (not logical stop loss). But today I have seen good strength in Nifty so I may trade in FUT instead of Option writing.
Bank Nifty: Intraday Demand and Supply Zones
Today Bank Nifty closed above its minor resistance level @ 20500.
On the upside there is the resistance of the trending channel and supply zone @ 21500-21800.
On the downside there is minor support @ 20500.
tcs simple learning setup using support resistance educational purpose share
one can observe and learn
Bank Nifty: Trading Plan and Demand and Supply Zone.
Bank Nifty trading in the trend line channel.
On the upper side major supply zone @ 21500-21800 and downside short turm major demand zone @ 19000-19200. Also, there is trendline support near the demand zone. In any case, if Bank Nifty will break and sustain below 19000 then minimum 1000 points downside range will open.
The yellow zone is an OTM option selling zone for me. I will avoid taking a trade-in FUT in this yellow zone.
Bank Nifty on Weekly Chart
Last week candle was not able to sustain above its supply zone @ 21150-21800. Even it failed to close in this supply zone.
On the downside, there is a demand zone @ 19500-19650 and weekly close is above this zone.
In any case, weekly close below 19500-19650 another 1500-2000 points downside range will open.
Bank Nifty: Intraday: Demand and Supply Zones19000-19300 is a strong demand zone for this week. On the upside 19650-20450 is a strong supply zone.
As I have mentioned yesterday Bank Nifty is trading in the wide sideways range.
Bank Nifty is compared to weak. I will wait for the trend confirmation then only I will prefer to trade in the Bank Nifty. Right now I may avoid trading.
a post on demand of a well wisher through message jsw steel y views is to trade on levels ( positional bias short on rise , but intraday and as per market trend
one can play swngs .
simple demonstration of how basic support resistance are helpful
through ed arrow (resistance) while blue arrow (support)
hope one will find it useful and take benefits ( dua me yaad rakhna) .
JSW STEELJSW Steel at crucial long term support. The sell off momentum might slowing down and the stock can give a bounce
For the clear trend of NIFTY by using TimeCycle, Channel, Major.No need write here anything today , it's really easy for everyone to understand the chart.
