Various Key Moments and Situation Nifty faces and How stock react to these Situation.

                      We know that there are 3 types of trend Uptrend, Downtrend and Sideways trend. If nifty is in uptrend, majority of stock move up, and nifty is in down, most stock will be in downtrend. These are trends of a stock or nifty index. But there are various moments and situation nifty often face. We should know how stock react at these situation nifty face. Below are the Key Moments and situation

Suppose Nifty Moving upward direction. We took daily chart or Hourly chart. Support and Resistance areas are clearly defined. Here is the situation or moments that nifty may face during it's upward movement.

Nifty Moving Sideways
Nifty start Moving upward
Nifty Moving steadily Upward
Nifty going to face Resistance
Nifty touched Resistance
Nifty trading at Resistance Level
Nifty lost it's Momentum and just moving sideways at Resistance Level
Nifty Nifty actively Trading at Resistance (may be Distribution)
Nifty Struggling at resistance (Trying to Break Resistance)
Nifty Broke the Resistance Level
Nifty continue it's upward movement (may be After retesting support that is broken resistance)

We depict the movement of Nifty in a picture below
Above is a nifty chart movement. Now we are adding some description to these price movement

1. Nifty Moving Sideways - Every tend Starts from a sideways Movement. So it is the time for accumulation of nifty stocks. it is considered to be Support Level. Very few stocks starts trend up in this stage.

2. Start Uptrend - After the Accumulation occurred, Some of the stock starts moving Upside (Leading Stock) that's why nifty index chart indicating uptrend chance. it start moving upward trend slowly preparing for big movement. while most of the stocks are in sideways or just preparing for uptrend.

         Click here to read about Leading stock, Obedient Stock and Following Stock

3. Moving Steadily Up - here is the time to move nifty upward direction. It move high strength with little time. Leading Stock, Obedient Stock and Following Stocks are participating in this nifty rally.

4. Nifty going to face Resistance - There is a resistance some pips above. So smart traders are start booking profit before resistance level. So the nifty movement strength is reduced. So some of the stock that rallied previous stage is now start consolidating.

5. Nifty trading at Resistance Level - Now Nifty touched Resistance and trading at these level. Most of the Nifty 50 Stocks are moving sideways at this time. Stocks which have high strength to uptrend is now stopped moving up. and some stock are start retracing. Re accumulation taking at some of stocks. Nifty Struggling to move upward at these level. leading stocks start showing up trending slowly at the end of the stage.Nifty test the support that was previous resistance

6. Nifty Broke the Resistance Level - Some new Large players entered the market they created position in the market.. that's why Nifty Nifty Brock the resistance level. Only leading stock are start moving at this time.

7. Nifty continue it's upward movement - Nifty continue it's upward Movement. leading stocks, obedient stocks and following stocks are participating in this rally.

Now we study how various nifty 50 stocks reacting to these moments/situation of nifty index movement
 here is another instance. How various stock react to nifty movement.



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