DMART Technical Analysis – 2H Chart (As of April 5, 2025)📊 Chart Structure Analysis (2h TF)
The chart is forming a classic Triple Top or a Head and Shoulders variant (with the 2nd peak being the highest).
All three peaks are touching the same horizontal resistance zone around ₹4,100–₹4,150.
The bottom support (neckline) is consistent, around ₹3,400 – giving a clear rectangular range.
This is a distribution pattern forming over time.
✅ Pattern Forming: Triple Top / Distribution Zone
🔺 Resistance Zone: ₹4,100 – ₹4,150
🔻 Support (Target) Zone: ₹3,400 – ₹3,450
📌 Key Observations:
Third Touch of Resistance: Price is testing the resistance zone for the third time without breaking out, indicating potential exhaustion.
Volume Analysis:
Peak 1 (Left Shoulder): High volume – likely smart money exiting.
Peak 2 (Head): Slightly lower volume – weakening bullish strength.
Peak 3 (Right Shoulder): Declining volume trend → Distribution confirmed.
Impulse Fall Tendency: In both previous tops, the fall has been sharp and direct, suggesting a similar move if it breaks again.
Breakdown Trigger: A candle closing below ₹4,000 with volume expansion can trigger a fall to ₹3,400.
Caution for Longs: Until a breakout above ₹4,150 with strong volume, long trades should be avoided.
🎯 Target and Risk Zones, Level Observation
Resistance (~₹4,150) Strong zone, tested 3 times, failed breakout → bearish sign.
Support (~₹3,400) Equal lows – neckline of triple top → potential target if breakdown occurs
Target Range ~₹3,400–₹3,450, as noted in the chart with a purple arrow
Fall Trigger A red candle closing below ₹4,000 with increasing volume is a likely trigger.
📌 Psychological & Market Dynamics
This is a well-formed distribution range, and the lower volumes at highs tell us that retail traders may be buying while smart money is exiting.
If the price closes below ₹4,000 with a decent volume spike, it could trigger stop losses and short positions, accelerating the fall.
🔁 Alternate Bullish Scenario (Low Probability for Now)
If somehow DMART breaks above ₹4,150 with strong volume, that would invalidate the triple top and open up fresh upside targets toward ₹4,400–₹4,500. However, current price and volume action do not support this for now.
📌 Conclusion
Bias: Bearish unless it breaks above ₹4,150 with volume.
Pattern: Triple top / distribution range.
Key Trigger: Breakdown below ₹4,000.
Fall Style: Sharp and impulsive, as seen before.
Target Zone: ₹3,400 – expect this to be hit quickly if breakdown starts.
Let me know if you’d like a Pine Script alert for this setup or want me to mark it as a watchlist trade idea with a checklist.
⚠️ DISCLAIMER
This analysis is purely for educational and informational purposes. It is not a recommendation to buy or sell any securities. Trading and investing in the stock market involves risk. Please consult with your financial advisor before making any trading decisions. The author is not responsible for any financial losses that may occur.
