Here's an account of my trade in Axis Bank stock. Please refer the 5-minute chart of the same. I have marked a strong support zone near '706' level by a horizontal box. During last session, price took support at this level twice. Today price opened Gap down with a strong bearish candle breaching '706' area. Within 15-20 minutes price was below 's1' and was pulling back to 's1' giving a great short opportunity in the background of strong bearish open.
I entered short at 703.45 and prematurely closed for just 1 point profit. My fear was that the price could stall near 700 support area marked by horizontal box. But the price continued its descent and reached all the way to 's3'. Initially, when I put on the trade I expected the price to find some pressure near 's2'. Price did find pressure and continued its fall further in the afternoon.
What about Nifty 50 index?
Before looking at Nifty's action today, I would like draw your attention to a strong support of '17200' which has been active for the past two sessions. Please refer the 5-minute chart of Nifty 50 below.
Today Nifty opened with a strong bearish candle. Within first 15 minutes Nifty had taken off ‘17200’ support. I immediately drew a horizontal box near 17080 area where a confluence of pivots 'S1', '-s2', 's2' existed. I expected Nifty to fall to this level. Nifty fell down to this level continued its descent to touch the psychological 17000 mark also. Nifty closed 1.53% down for the day.