Zomato Bouncing from Support. Low Risk SetUp

เมื่อวานซืน

After hitting all our targets in the previous trade the stock pulled back deeply with the market correction. Now it is setting up again after a pullback. This is a risky proposition but the risk is below 8% and offers good Risk to Reward.

Zomato Ltd - Technical Setup Analysis 📊

Entry Level: ₹244.45
Stop Loss (SL): ₹225.77 (-7.63% from entry 🚨)
Target 1 (T1): ₹285.70
Target 2 (T2): ₹305.40
Risk-to-Reward Ratio (R:R)
T1: 1:2
T2: 1:3

🔘Setup Overview

The stock initially broke down below key levels but has now bounced back strongly from the 200-day moving average (DMA), closing above it with confidence. 📈 This suggests renewed buying momentum and potential for further upside.

🔘Support Zone: The bounce occurred at a strong support zone, aligning with the 200 DMA.

⚠️Market Risk: The broader market trend remains uncertain—this could either be the start of a bear market 🐻 or simply a bull market correction 🐂.

🔘Why This Trade is Low-Risk?

The stop-loss is shallow and limits potential losses.
If this is a bull market correction, the risk-to-reward ratio is highly favorable, making it a solid opportunity for swing traders.

🔘Key Considerations

Monitor market trends closely for confirmation of the broader direction.
Keep position sizing moderate due to overall market uncertainty.

❗️Disclaimer:

This analysis is for informational and educational purposes only and should not be considered financial advice. Trading in the stock market involves risks, and past performance is not indicative of future results. Always conduct your own research or consult a qualified financial advisor before making any trading or investment decisions. The analysis reflects personal views and is subject to change based on market conditions. Neither the author nor any associated entities are responsible for any losses incurred from decisions made based on this analysis.