An unanswered question

[Konetisatya]

Hello experts,

Please clarify my doubt.

How the support and resistance will work. Per example if nifty is at 7300 and assume support 1/2/3 are 7200, 7100 and 7000 respectively and assume resistance 1/2/3 are 7400, 7500 and 7600 respectively. When Nifty reaches the first resistance 7400, why it comes down. If Nifty has to come down means all the top 50 shares listed in the NSE have to come down. What is the logic behind share prices coming down when the Nifty reaches to resistance level.

Please answer my question..

Thanks
Satya

 

[jahan]

Hello experts,

Please clarify my doubt.

How the support and resistance will work. Per example if nifty is at 7300 and assume support 1/2/3 are 7200, 7100 and 7000 respectively and assume resistance 1/2/3 are 7400, 7500 and 7600 respectively. When Nifty reaches the first resistance 7400, why it comes down. If Nifty has to come down means all the top 50 shares listed in the NSE have to come down. What is the logic behind share prices coming down when the Nifty reaches to resistance level.

Please answer my question..

Thanks
Satya

Hello,

supp/resi meant to be broke or hold....nobody's know when they do so......
dear friend don't worry about them...... instead learn to trade with them .

Regards,

 

[mastermind007]

Hello experts,

Please clarify my doubt.

How the support and resistance will work. Per example if nifty is at 7300 and assume support 1/2/3 are 7200, 7100 and 7000 respectively and assume resistance 1/2/3 are 7400, 7500 and 7600 respectively. When Nifty reaches the first resistance 7400, why it comes down. If Nifty has to come down means all the top 50 shares listed in the NSE have to come down. What is the logic behind share prices coming down when the Nifty reaches to resistance level.

Please answer my question..

Thanks
Satya

To answer this question, you need to ask its inverse!

assume you hold 1 share of each of the shares in NIFTY basket and that each of that share has moved from your purchase price so that now you are in good profit.

Now, What would you do when the index reaches Resistance 1?

 

[Konetisatya]

Thanks for the response.

Support and resistance for stocks makes sense, because a group of people trading in that share may change their mindset when it reaches support/resistance levels. but the support and resistance for Index is based on the share listed in the Exchange. I am still confused about the Index support and resistance levels. Could you please elaborate your answer.

Thanks & Regards
Satya.

 

[heppagudi]

When nifty at resistance may means, the buyers got increased and to balance between sellers nifty goes to support level again for the immediate consolidation.