4 Replies to “What is mean by Support and Resistance level of NIFTY & BSE?”

  1. Most likely, the support and resistance are references to technically important price levels on the major indexes, where buyers have resisted selling pressure and held firm, or where pessimists have beaten back attempts at further gains. As you should well know, people almost always take directly opposing positions; market strategists who play with a lot of capital, perform a lot of number crunching and statistical analysis on the trending in the hopes of identifying a consistent pattern to profit on. The support level would be a floor, where there’s plenty of buyers willing to step in and get a bargain? and the resistance is just the ceiling that is edging back, saying there’s still some opposition and people wanting to get out. Normally, if the price breaks the support, it’s a sign of further declines, though to be sure, you can’t rely on technical analysis except as an ancillary tool to your strategy of buying on fundamentals.

  2. Support & resistance levels for a stock / index are calculated by using the open/low/high/close prices of previous day.

    There will be lot of buying near the support level (S1,S2…) and Selling near to resistance. (R1,R2…)

    Always buy near the support and sell near the resistance.

  3. Support is the level below which share price may not fall . Similarly, Resistance is the level beyond which stock price may not move in normal circumstance. Once Resistance is broken (Or share price goes beyond Resistance level), the stock has very high chance of trending up and resistance becomes support.

    Support & Resistance are calculated based on historical price movement. They can be for period as lows as few mins to few years.
    Some Example
    Pivot point provides support/Resistance for next trading day.
    Moving averages also provides dynamic support and resistance.
    Trendline is another way and many more ways to determine support and resistance.

    These terms are used in technical analysis. For more visit http://tutorials.TopStockResearch.com

    and for nifty Support and resistance visit http://www.TopStockResearch.com/INDIAN_STOCKS/INDEX/TechAnalysis_S_P_CNX_NIFTY.html

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