Market Overview:
SRF has finally broken out after a prolonged consolidation phase that lasted from September 2021 to March 2025. This long period of sideways movement indicates a time correction, where price remained within a defined range (₹2,865 - ₹2,002) instead of a sharp decline.
Step-by-Step Analysis
1. Breakout Confirmation & Market Structure
📌 Previous Range: ₹2,865 – ₹2,002 (Time Correction Phase)
📌 Breakout Attempt (Jan 31): Price crossed the range high but failed to sustain.
📌 Swing Low Support: ₹2,764 held as a strong demand zone.
📌 Current Price Action: Price has successfully closed back at the all-time high, confirming strength.
✅ This signals institutional accumulation, increasing the probability of an uptrend continuation.
2. Trade Entry & Execution Plan
📊 According to the Darvas Box method, the breakout level lies between ₹3,000 – ₹2,900.
🔹 Entry Plan:
Aggressive Traders: Can enter within ₹3,000 – ₹2,900 for a swing trade.
Conservative Traders: Can wait for a retest near previous swing low before entering.
🔹 Stop-Loss Strategy:
Ideal Stop-Loss: ₹2,650 (Below recent support levels).
Adjust based on risk tolerance.
3. Profit Targets & Risk-Reward Ratio
📈 Projected Price Targets:
1️⃣ ₹3,500 – First swing target.
2️⃣ ₹4,375 – Second major target based on breakout momentum.
💡 Risk-Reward Calculation:
Entry (₹3,000 – ₹2,900)
Stop-Loss (₹2,650)
Target 1 (₹3,500) → Risk-Reward Ratio ~ 2:1
Target 2 (₹4,375) → Risk-Reward Ratio ~ 4:1
Final Thoughts & Caution
✅ SRF is showing strong bullish momentum after its long accumulation phase, making it a high-probability investment opportunity.
✅ A retest of previous resistance-turned-support can provide better confirmation.
⚠️ Risk Management is Key: Always analyze price action before investing and adjust stop-loss levels based on market behavior.
👉 Will SRF sustain this breakout, or is a deeper retest required? Let’s analyze further! 🚀📊
On January 31, the stock attempted to break its previous range high but failed to sustain, leading to a pullback. However, the price found support at ₹2,764 (previous swing low) and has reclaimed its all-time high, signaling strong bullish intent on the daily timeframe.
SRF has finally broken out after a prolonged consolidation phase that lasted from September 2021 to March 2025. This long period of sideways movement indicates a time correction, where price remained within a defined range (₹2,865 - ₹2,002) instead of a sharp decline.
Step-by-Step Analysis
1. Breakout Confirmation & Market Structure
📌 Previous Range: ₹2,865 – ₹2,002 (Time Correction Phase)
📌 Breakout Attempt (Jan 31): Price crossed the range high but failed to sustain.
📌 Swing Low Support: ₹2,764 held as a strong demand zone.
📌 Current Price Action: Price has successfully closed back at the all-time high, confirming strength.
✅ This signals institutional accumulation, increasing the probability of an uptrend continuation.
2. Trade Entry & Execution Plan
📊 According to the Darvas Box method, the breakout level lies between ₹3,000 – ₹2,900.
🔹 Entry Plan:
Aggressive Traders: Can enter within ₹3,000 – ₹2,900 for a swing trade.
Conservative Traders: Can wait for a retest near previous swing low before entering.
🔹 Stop-Loss Strategy:
Ideal Stop-Loss: ₹2,650 (Below recent support levels).
Adjust based on risk tolerance.
3. Profit Targets & Risk-Reward Ratio
📈 Projected Price Targets:
1️⃣ ₹3,500 – First swing target.
2️⃣ ₹4,375 – Second major target based on breakout momentum.
💡 Risk-Reward Calculation:
Entry (₹3,000 – ₹2,900)
Stop-Loss (₹2,650)
Target 1 (₹3,500) → Risk-Reward Ratio ~ 2:1
Target 2 (₹4,375) → Risk-Reward Ratio ~ 4:1
Final Thoughts & Caution
✅ SRF is showing strong bullish momentum after its long accumulation phase, making it a high-probability investment opportunity.
✅ A retest of previous resistance-turned-support can provide better confirmation.
⚠️ Risk Management is Key: Always analyze price action before investing and adjust stop-loss levels based on market behavior.
👉 Will SRF sustain this breakout, or is a deeper retest required? Let’s analyze further! 🚀📊
On January 31, the stock attempted to break its previous range high but failed to sustain, leading to a pullback. However, the price found support at ₹2,764 (previous swing low) and has reclaimed its all-time high, signaling strong bullish intent on the daily timeframe.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.