Polycab India Ltd. - Short Position Setup

Analysis for Short Position Condition:

1.Key Breakdown Level:

• ₹7,282 is a critical horizontal support level. A decisive breakdown below this level could trigger a bearish move.
  

2.Volume Profile Analysis:

• Below ₹7,282, the volume profile shows limited buying interest until ₹6,997, suggesting a potential drop to this level.
  
• Further weakness could see the stock test ₹6,746, where significant buying activity has previously occurred.
  

3.Trendline Breakdown:

• The stock is trading within an ascending channel. A breakdown below ₹7,282 will confirm the failure of this channel, indicating a trend reversal.
  

4.Moving Averages:

• The 20-day EMA is currently acting as dynamic support near ₹7,282. A breakdown will likely push the stock toward the 50-day EMA around ₹6,997.
  
• The 200-day EMA near ₹6,746 is a long-term support level to monitor.
  

5.RSI (Relative Strength Index):

• RSI is neutral but could head toward oversold levels if the breakdown occurs, strengthening the bearish view.
  

6.Volume Confirmation:

• Watch for an increase in sell-side volume during the breakdown for confirmation.
  

Trade Plan for Short Positions:

Entry Trigger: Below ₹7,282.
Targets:

• Target 1: ₹6,997
  
• Target 2: ₹6,746
  

Stop Loss: Above ₹7,438 (previous high near resistance).
Risk-Reward Ratio: Ensure an ideal ratio of at least 1:2 for the trade.

Alternate Scenario:

• If ₹7,282 holds and the stock bounces, the immediate upside resistance is ₹7,654, above which the stock may resume its bullish trend.