NIFTY INDIA DEFENCE SHOULD CORRECT TO FILL GAP.. CAUTIOUSThis is a technical analysis chart of the NIFTY IND Defence Index (1D timeframe),
📊 Current Market Status:
• Last Close: ₹8,752.95
• Day’s Change: -₹105.60 (▼1.19%)
• Day’s Range: ₹8,714.55 – ₹8,884.40
🟢 Uptrend Summary (Recent Past):
• Low: ₹5,632.70 (March 2025)
• High: ₹9,204.95 (recent peak)
• Gain: +₹2,688.55 (≈+30.76%)
🧭 Fibonacci Retracement Levels (from swing low to swing high):
• 0.236: ₹8,361.90
• 0.382: ₹7,840.35
• 0.5: ₹7,418.80
• 0.618: ₹6,997.30
• 0.786: ₹6,391.15
🔴 Bearish Signals:
1. Price rejection from top of upward channel
• Price has moved out of the rising red parallel channel.
• Currently testing support, and breakdown seems underway.
2. Break below dotted descending trendline
• Indicates short-term weakness.
3. Gap zone between ~₹7,840–₹7,418 could act as a demand/support zone, but also a magnet if breakdown accelerates.
4. Targeted Downside Projections:
• 1st Target: ₹7,884 (▼9.91% from peak)
• 2nd Target: ₹7,474 (▼14.18% from peak) — aligned near the 0.5 retracement level
🔵 Key Support Zones:
• ₹7,884.15 — Previous strong support zone
• ₹7,518.85–₹7,474.05 — Confluence of gap support and 50% Fibonacci
🔺 Resistance Levels (Upside Challenges):
• ₹9,204.95 — Recent peak (0% retracement)
• ₹9,311.35 — Upper projection/resistance
• ₹9,412.65 — Red dashed resistance line
• ₹9,832.90 — 0.382 projection from upward move
📉 Conclusion & Strategy Outlook:
🔻 Bearish Bias (Short-Term)
• Breakdown of trendline and channel signals a likely correction phase.
• Look for support at ₹7,884, and if breached, expect deeper correction to ₹7,474–7,518.
🔼 Reversal Confirmation (Bullish if):
• Price reclaims and sustains above ₹9,000, breaking past previous swing high.
✅ Action Points:
• Long Holders: Watch ₹8,360 (0.236 fib) — if broken, tighten stop-loss.
• Short Opportunities: Breakdown below ₹8,468 could trigger downside to ₹7,884 and ₹7,474.
• Fresh Entry (Positional Longs): Consider near ₹7,474–7,518 if price shows bullish reversal signals there.
DO YOUR OWN D/D
