You can see the power grid chart them doing very well in the current period. But if you watch carefully power grid stock you can notice they take six time support on Rs. 181. Whenever stock touch 181 support level power grid share price bounce back from this level. Last 5 days power grid stock more volatile on nse. If you see blue line they work as a resistance on Rs. 216 approx. from last two years.
If we watch chart carefully, you can see stock also struggle on orange line approx. Rs. 205. Stock also trying to break the orange line resistance of power grid share price Rs. 205 but the last two times they don’t break. If we are talking about price action, on 23Jan2020 stock total traded quantity 12,71,58,366 and deliverable quantity is 8,93,72,584 & percent of deliverable Qty to Trade Qty is 70.28 it’s a good news for power grid share price. But after two days they move down. If the stock takes support on red line Rs. 181 & bounces back from red line, we can surely say orange line resistance break because many traders buy the stock near Rs. 204.
If we forget the orange line, we can say stock move in the channel and consolidating. If the stock moves in channel, it’s a good opportunity for traders to make money in stock. Because when stock touch their support they bounce back on opposite direction when stock touch resistance they also back in another direction. It’s a golden opportunity for short-term traders because they buy on support and sell at resistance.
Smart traders watch support & resistance carefully they don’t jump in the market directly without analysis. They first analysis support & resistance levels, then watch volumes, average traded quantity, deliverable quantity, etc. After last step risk-ratio and money management then they buy.
So, get back in topic power grid share price first they take support on red line Rs. 181 after that if they bounce back from red line so, we watch orange line resistance then second resistance blue line.
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