I am holding a short position on ABB march futures at ₹5,150. Please let me know the nearest support and resistance. And should I add more shorts at the current level or exit the trade? – Rahul Singhania
ABB India (₹5,120): The stock has been in a downtrend since October last year. So far in 2025, it has already lost about 26 per cent.
The price action shows that the bear trend is intact and there are no signs of a trend reversal on the charts yet. So, the likelihood for the downswing to extend is high.
However, notice that there are two key supports coming up at ₹4,875 and ₹4,400 (for futures, the equivalent value could be ₹4,900 and ₹4,450). The price region between these two levels can act as a support band. Also, the Relative Strength Index indicator on the daily chart shows some loss of downward momentum.
That said, whether any upside from here will result in a bullish trend reversal depends on whether the stock can surpass the notable barrier at ₹5,550. A breakout of this can turn the trend positive wherein the stock can appreciate to ₹6,000 quickly.
Nevertheless, from the current level of ₹5,120, there is room for a fall before a recovery.
ABB March Futures (₹5,140): Considering the above factors, whether to hold or exit the short position comes to your risk tolerance or the maximum risk that you are ready to take for this particular trade.
That is, the ideal stop-loss for this position is ₹5,550. Therefore, from the price that you have short ABB futures, the stop-loss is wider than the first target of ₹4,900. If you are comfortable with this risk-reward ratio, you can hold the short and maintain a stop-loss at ₹5,550.
When the price drops to ₹5,000, revise the stop-loss to ₹5,300. When ABB futures decline to ₹4,800, tighten the stop-loss to ₹5,050. On a fall to ₹4,650, bring the stop-loss further down to ₹4,800. Exit at ₹4,500.
Instead of waiting for a fall to ₹4,500, you may as well opt to exit at ₹4,900.
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