Nifty Update: Key Supply Zone Test Ahead – Time to Book Partial

On 27th February, I shared a detailed analysis explaining why Nifty was likely to take support from the Monthly Demand Zone.

At that time, the entire market was extremely bearish. FIIs were selling heavily, and most people believed that catching the bottom was impossible. But as demand and supply zone traders, we trusted the footprints of smart money—and as expected, Nifty took support exactly at that zone and reversed.

Today, Nifty is trading just below 5% of its all-time high. This shows the power of demand zones, which are not just random boxes but clear evidence of institutional activity.

Now, let's focus on the current market development.

📈 Nifty Nearing a Critical Supply Zone 📉
If you look at the chart, you'll see that Nifty is now approaching a Daily Supply Zone (Drop-Base-Drop) Which have strong follow-through, making this a strong resistance area.

In addition, I’ve marked a Weekly Supply Zone (Drop-Base-Rally) on the chart. Interestingly, the daily supply zone lies inside this weekly supply zone, creating a powerful confluence of resistance. This stacking of zones increases the probability of price facing rejection in this area.

📊 What Should Traders Do?

• If you are holding profitable positions in stocks, this could be a good time to book partial profits.
  
• Be prepared for a possible price rejection from the daily and weekly supply zone.
  
• However, it’s not guaranteed that Nifty will fall from here. Price can also break through the zone, but as traders, capital protection comes first.
  
• The most likely scenario is a small pullback, not a major fall. After the pullback, Nifty may resume its upward move.
  
• Always focus on high-probability setups and manage your risk smartly.
  

📢 Conclusion:
Nifty is at a crucial supply zone cluster. A pullback is likely, so this could be a smart time to lock in some gains. Watch price action closely and adjust your strategy accordingly.

Lastly, Thank you for your support. Feel free to ask if you have questions.

“Trade what you see, not what you hear. The chart always whispers before the news screams.” 📊🔥

This analysis is purely for educational purposes and is not intended as a trading or investment recommendation. I am not a SEBI registered analyst.