Here's is a case study of Bharat Forge Ltd. This morning Nifty experienced a big fall of 180 points in the first 20 minutes. This broader market behavior really unseated the trader in me to be active.
I closely watched my watch list. Zeroing on Bharat Forge I actively desired to pull the trigger. It was not possible. Therefore, I decided to watch price action. Below is the 5-minute chart of Bharat Forge Ltd. The opening candle is marked on the chart. Along with Nifty the scrip below also experienced fall in the first 20 minutes.
By the time the dust had settled 11:55 and two candles of prime importance made their presence into the chart: A high-wave and a hammer. I have marked the hammer in the above chart. A confirmation candle appeared as well. A good opportunity with favorable Risk-Reward ratios was at sight. My fingers were crossed at this moment.
As price went up, I knew it could make a case study. So I planned an entry at 737.25 and decided to actively watch the scrip. The trade box is drawn in the chart. The details are Entry is @ 737.25, Stop is placed @ 732.9, and the target is @ 748.5. Target falls in confluence with 200-MA and congestion zone marked by a circle.
For the rest of the day price was directionless. I closed the trade manually at 3:00 for 740.2.
What about Nifty 50 index?
Nifty 50 index opened Gap down and swiftly fell 180 points down in the first 20 minutes. The opening candle is marked in the 5-minute chart of Nifty 50 index below. The broader index found support a little below the current weekly pivot 'S1'. Please refer the chart below.
Reclaiming the points lost in the morning Nifty kept inching higher and higher for the rest of the day. Nifty closed 0.08% higher.