Deepak Nitrite Ltd BUY POSITION CALL OF OVER VIEW

 

Based on the chart of Deepak Nitrite Ltd. provided, here is a technical analysis view:

1. Support and Resistance Levels:

Immediate Resistance: Around ₹2,014.45, which aligns with the 38.2% Fibonacci retracement level. This is a key level to break for further upside movement.

Support Levels:

Strong support is visible around ₹1,950.05, just above the 78.6% retracement level.

Another critical support is around ₹1,931.75.

2. Fibonacci Retracement:

The 50% retracement level is around ₹1,993.35. Prices tend to retrace to the 50% level before continuing the trend.

61.8% (₹1,968.25) is a potential resistance/support level.

3. RSI Analysis:

RSI is showing a recovery from the oversold zone, indicating buying momentum. A cross above 50 would indicate further bullish momentum.

4. Volume Analysis:

There was a spike in volume at lower levels, which could signify accumulation or reversal potential.

Target and Stop-Loss Levels:

Short-Term Target (T1): ₹2,014.45 (near the 38.2% retracement level).

Medium-Term Target (T2): ₹2,018.40 and ₹2,050 (next key resistance levels).

Stop-Loss:

Conservative traders can set it around ₹1,950.05 (below immediate support).

Aggressive traders can place it below ₹1,931.75 (major support).

Conclusion:

If the price breaks above ₹2,014.45 with good volume, it could signal further bullishness. Failure to hold the ₹1,950 level may indicate downside potential.

Short-Term View (1-2 weeks):

Outlook: Bullish bias, but at a critical resistance level (₹2,014.45).

Key Levels:

Resistance: ₹2,014.45 and ₹2,018.40. A breakout above these levels could lead to quick gains.

Support: ₹1,950.05 and ₹1,931.75. If breached, the price could move lower.

Target: ₹2,014–₹2,018 (next resistance zones).

Stop-Loss: ₹1,950.05.

Action: Wait for a clear breakout above ₹2,014.45 before entering for a short-term trade.

Medium-Term View (1-3 months):

Outlook: Neutral to mildly bullish. Price needs to sustain above the ₹2,018.40 level to show a strong recovery.

Key Levels:

Resistance: ₹2,050 and ₹2,103. These levels will be critical in determining sustained bullishness.

Support: ₹1,931.75 is a strong medium-term base. Breach of this could lead to a downward trend.

Target: ₹2,050–₹2,103 if the price breaks the short-term resistance zones.

Stop-Loss: ₹1,931.75 for medium-term positions.

Long-Term View (3+ months):

Outlook: Bearish trend reversal potential, but more confirmation is needed. The stock is in a corrective phase after a downtrend.

Key Levels:

Resistance: A close above ₹2,103 would indicate a potential reversal into a long-term uptrend.

Support: ₹1,875 is a major long-term support. A breach could indicate continued downside.

Target:

Bullish scenario: ₹2,200 if sustained breakout occurs.

Bearish scenario: A drop to ₹1,850 if ₹1,931 and ₹1,875 supports are broken.

Action: Wait for long-term confirmation before entering large positions. Look for sustained closes above ₹2,100 for a bullish long-term view.

Summary:

Short Term: Watch for breakout above ₹2,014.45.

Medium Term: Price needs to sustain above ₹2,050.

Long Term: Close monitoring is required for a trend reversal above ₹2,100 or breakdown below ₹1,875.