Top 4 stocks trading near short-term support levels

Top 4 stocks trading near short-term support levels

by 5paisa Research Team Last Updated: Apr 04, 2022, 02:57 PM IST

One of the most basic and crucial part of technical analysis is support and resistance. Here are the top 4 stocks that are trading near their short-term support levels.

When it comes to analyzing a stock based on technical analysis, one of the most fundamental and crucial things is understanding the support and resistance levels. Now, why is it important to look at support and resistance levels? Studying support and resistance levels ideally help you understand the probable level where the price is likely to move in the opposite direction.

So, does it mean that each time when a stock reaches such levels, it would turn back? No, there would be times when the stock might have gathered the strength to break these support and resistance levels. Breaching of such levels ideally mean that the trend is likely to continue in the direction it has breached.

Hence, it is quite important to understand support and resistance levels as it would help you make decisions on short-term trades or would alert you for swing trades. Now the most likely question here would be, how to identify these support and resistance levels? Although technical analysis seems objective in nature, it has got a lot of subjective as well.

Analysing support and resistance level is quite subjective. However, the most basic is to find a level where the stock failed to breach the level maximum number of times. Moving averages are also one of the ways to understand support levels. Many also use Fibonacci retracement and extension for deciding support and resistance levels.

Having said that, here is the list of the top four stocks that are presently trading near their support levels. You should monitor the price action of stock at these levels. This will help you take better entry and exit decisions.

Stocks 

Last Traded Price (Rs) 

Time Frame 

50 Period EMA (Rs) 

Support Level (Rs) 

Hindustan Unilever Ltd. 

2,389.7 

Weekly 

2,401.2 

2,368.0 

Bajaj Auto Ltd. 

3,700.7 

Weekly 

3,648.9 

3,647.2 

Power Grid Corporation of India Ltd. 

185.9 

Daily 

185.0 

185.3 

HDFC Bank Ltd. 

1,593.6 

Daily 

1,596.0 

1,587.2 

 

SENSEX
54,052.61
-236.00 (-0.43%)
Nifty 50
16,125.15
-89.55 (-0.55%)
Nifty Bank
34,290.15
42.55 (0.12%)
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SENSEX
54,052.61
-236.00 (-0.43%)
Nifty 50
16,125.15
-89.55 (-0.55%)
Nifty Bank
34,290.15
42.55 (0.12%)

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