DEEPAK NITRITE – Support Bounce or Bear Trap?

DEEPAK NITRITE – Support Bounce or Bear Trap? 🔍

Deepak Nitrite Limited

📌 Trade / Swing Setup
• CMP: ₹1795
• SL: ₹1490
• Targets: ₹2106 → ₹2500 → ₹3000

📍 Structure & Price Action
• Stock bounced from major support zone
• Breakdown attempt failed and price moved back up → possible bear trap
• Such moves often trap shorts and support a relief / reversal rally
• Momentum still slow — structure-based, not aggressive

📊 Big Picture (Important)
• Chemical sector fundamentals improving
– Capacity utilisation rising
– Export competitiveness improving
• Sector recovery is often a pre-condition for stock turnarounds

📈 Upside Perspective
• ₹3000 is a major box resistance
• Only if ₹3000 breaks & sustains, long-term box breakout can open ₹4500 zone
• That is future potential, not immediate — needs time & confirmation

🧠 Approach (No hype):
• This is a calculated chance, not blind bullishness
• Patience, discipline & correct position sizing are critical
• Expect volatility — avoid leverage / overexposure

📌 View Summary:
Bounce from support + failed breakdown = bear pressure weakening.
If sector tailwinds sustain, gradual upside is possible.

⚠️ Clarification:
This is an independent analysis based purely on technical and market study. No part of Religare is involved in this view or recommendation.

📝 Important:
I am not responsible for any loss or profit incurred. I am not taking any fees — sharing for educational purposes only.

📉 Disclaimer: Not SEBI-registered. Please do your own research or consult a financial advisor before taking any investment decision.