Nifty 50 Index – Chart Pattern Analysis - 8th Oct., 2025

NIFTY

Nifty 50 Index – 5min Chart Pattern Analysis
A "Head and Shoulders" pattern has just triggered a breakdown on the Nifty 50 intraday chart, signaling a bearish reversal from recent highs.

Pattern Structure & Trade Logic
Pattern Breakdown:

Price has broken through the neckline (support level) near 25,115 after forming two shoulders and a prominent head at the top.

Breakdown is confirmed by a strong bearish candle and increased volume.

Targets:

The measured move (distance from head to neckline) gives a projected downside to around 25,014, suggesting a short trade setup.

The distance marked in blue identifies this 0.41% drop as the initial target zone.

Trade Plan
Entry:

Short initiated on the break below 25,115 after the pattern confirms.

Stop Loss:

The stop is placed above the right shoulder at 25,150–25,164. This prevents losses if the breakdown fails and price retraces.

Target:

Main target at 25,014, roughly matching the pattern’s measured move and prior demand.

Pattern Psychology
Bearish Implication:

The head and shoulders signals exhaustion of buyers and initiation of a corrective phase; volume confirmation adds trade conviction.

Risk Management:

The setup allows for tight risk control relative to reward (target zone).