Here are my morning thoughts on my early trade. In my vague plan for today's trade I had zeroed in on Sunpharma stock. Because, there was a beautiful bullish Flag pattern present in 5-minute chart. Please refer the chart below.
I expected the stock to move higher. Luckily, Sunpharma opening candle was a confirmation for me as it was a Gap up candle with large down wick. A large down wick indicates weakness of bears. I chose to wait patiently for the price to retrace a bit in order to get a better entry.
In fact, my mind was little hasty about taking the trade. I further waited. I took the trade little aggressively. My entry is shown in the chart. I scanned 3-minute chart to find good entry point. It was already there.
My trade details are as follows. The Entry is @ 692.8, Stop @ 691.6, Target @ 699.2. Risk-Rewards ratio for this trade was 1:5.
I placed my target at 699.2 as there was weekly pivot 'P' was present. Along with weekly pivot there is also Resistance zone marked in rectangular box near 699-700 levels. I thought the stock might stop there for some time. My target was hit quickly and price moved up by another 3-4 points.
What about Nifty?
Before we look into today's activity in Nifty I would like to briefly log it's yesterday's action. Yesterday, the session opened 180 points Gap up which was a surprise to me. Throughout the day Nifty stayed sideways offering no trade set ups. Yesterday's session found stiff Resistance near 15120 - 15130. Please have a look at the 10-minute chart below.
15120 - 15150 zone is marked by a rectangular box in the chart is acting as Resistance in the broader index.
Today, Nifty 50 opened within the range of yesterday. The broader index stayed sideways till 12:15 and fell down for the rest of the day. The 1:35 P.M. 10-minute candle breached previous day low for the first time. Nifty closed 0.52% down for the day.