Trade Journal - Sunpharma Trade

Sunpharma in its 30-Minute chart was finding Resistance near 645 levels. Expecting the stock to retrace a bit here I took a short trade.

Anytime a share finds a strong Resistance level in its path, generally a pause occurs.

In the below chart of Sunpharma, my short position entry is seen. Entry @ 639.35, SL @ 642.25, and Target @ 631-630 levels. The R-R ratio works out to be 1:2.5.

From the above chart, we can see a mild-intensity Resistance zone marked with gray box near 640-642 level. My thinking was that this zone will act tough for the price.

Now, how does the Nifty 50 look for the day?

The broader index opened 300 points down. At the time of trade entry, few bulls were trying to push Nifty 50 up to the levels where the index opened. The arrow mark in the above chart shows the time of my entry.

What happened with the trade?

Eventually, SL level was taken off. I was short 100 shares for the day. My loss is 290. With brokerage added, the total loss amounts roughly to 330-335.

What are the lessons learnt? The images below show us simple lessons.

What about Nifty lesson?