Axis Bank stock though opened Gap Down, the first candle covered the distance to finally become a green candle. Refer the 2-minute chart below, where the opening candle is marked.
A strong resistance zone is marked by the read horizontal box. This zone has been very stiff for the past 3 - 4 sessions. Today as the price rise was strong for the 15 minutes, I assumed this zone will be taken off today.
I planned to enter at 759.5 near the current day pivot 'p' where 200-MA is also coinciding with it. Price gave a 1st pull back opportunity. I hesitated to enter there because my planned entry point hadn't been given by the market.
A little later a strong candle appeared at 9:45. Here I started to entertain placing a buy trade as that green candle had pierced the supply zone. So I entered at a pull back.
The trade box is drawn. The Risk-Rewards ratio was 1:2.9. The entry is @ 763.25, tight stop is @ 761.6, and the target is @ 768. At the point target, there is a price high is in place from previous session (not seen here).
Price was pressed down by current daily pivot 'r1' thrice shown by down arrow marks. Even RSI could just rise to 60 the third time. That was a signal that I should have read. My dominant thought was 'stick to the plan'.
Few times during the life of this trade, I even thought of tightening the stop even more by moving it higher to 762.4. But, the dominant thought 'stick to the plan' forced me not to do so.
Eventually, the stock took off my stop. I took a loss of 1.65 points.
Lessons:
If I have entered the trade way above my perceived entry point (in this case 759.5), actively manage the trade as the risk widens against you.
Actively look for all signals that tell hitting of stop. Take action if the signals are clear.
What about Nifty 50 index?
Nifty 50 index opened the current session from the point where it had left off from previous session. After the first green candle, the index nosedived to find support near the current daily pivot 'p'. Please refer the 5-minute chart below.
From daily pivot 'p', Nifty scaled higher and again made another all-time high at 16585 near the daily pivot 'r1'. Then for the rest of the day, the broader index stayed sideways.