NITINSPIN Note: Recently Cup 7 Handle pattern breakout gave quite a good run, so this Cup & Handle breakout Might not go beyond Target 1..
Nitin Spinners Limited is forming a classic continuation structure on the daily chart. The stock is setting up a **Cup & Handle Breakout** pattern with a defined Consolidation Zone = 778.95 - 733 outlined post-breakout. Currently trading at ₹651.20 (+0.49%), price is coiling right below the primary neckline resistance and trigger level at (google.com/search?q=667.00) • Cup & Handle Breakout Entry. Lower structural support shelves at (google.com/search?q=633.40) and (google.com/search?q=623.00) • Retest provide immediate demand backup above the cup bottom floor at (google.com/search?q=579.00).
🔹 PATTERN: CUP & HANDLE BREAKOUT
• Pattern Structure: Classic rounded Cup & Handle accumulation base formed above the ₹579.00 support trough.
• Breakout Neckline Level: Horizontal resistance line at ₹667.00 (Cup & Handle Breakout Entry).
• Retest / Retrace Support Levels: Intermediate green demand levels at ₹633.40 and ₹623.00 (Retest).
• Post-Breakout Consolidation Zone: Horizontal target range spanning ₹733.00 – ₹778.95.
• Structural Base Floor: Blue horizontal support line at ₹579.00.
🟢 UPSIDE SCENARIO – BULLISH BREAKOUT
• Primary Entry Level (BUY Entry): ₹667.00 (Cup & Handle Breakout Entry)
• Confirmation Required: Daily candle close above ₹667.00
• Intermediate Support / Retest Pivot: ₹733.00 (+9.90% move from ₹667.00 BUY entry)
• TARGET 1: ₹755.00 (+13.19% move from BUY entry)
• Consolidation Upper Boundary: ₹778.95 (+16.78% move from BUY entry / Stay Above)
• TARGET 2 / Swing Target: ₹843.00 (+26.39% move from BUY entry)
• Macro Extension EXIT Target: ₹909.00 (+36.28% move from BUY entry)
🔴 DOWNSIDE SCENARIO – BEARISH BREAKDOWN
• Weakening Level: Rejection near ₹667.00 followed by loss of ₹633.40
• Retest Breakdown Level: Below horizontal support at ₹623.00
• Important Support Levels: ₹651.20, ₹633.40, ₹623.00 (Retest), and ₹579.00 (Base Low)
• Invalidation / Stop Loss (SL): Daily candle close below base low at ₹579.00 (-13.19% SL from ₹667.00 BUY entry) or tighter stop below retest shelf at ₹623.00 (-6.60% SL).
🔹 MY BREAKOUT & EXIT RULE
If price crosses above a key resistance level (such as ₹667.00, ₹755.00, or ₹843.00) and makes a High above that level, but closes below that same level, I consider it a failed breakout/rejection and the BUYER NEEDS TO EXIT THE TRADE.
High above level + Close below level = Failed breakout → EXIT BUY TRADE.
🎯 MY TRADE ROADMAP
Bullish Breakout Path:
₹667.00 Cup & Handle Breakout Entry (BUY Entry)
↓
Initial Rally toward ₹755.00 TARGET 1 (+13.19% from BUY Entry)
↓
Pullback / Retest to ₹733.00 Supp/Retest Level
↓
Rebound & Hold above ₹778.95 Stay Above Boundary
↓
₹843.00 TARGET 2 / Swing Target (+26.39% from BUY Entry)
↓
₹909.00 EXIT / Macro Target (+36.28% from BUY Entry)
Bearish Breakdown Path:
Rejection at ₹667.00 Neckline Resistance
↓
₹633.40 / ₹623.00 Retest Support Floor
↓
Loss of ₹623.00 leading to ₹579.00 Base Low Invalidation (-13.19% SL from BUY Entry)
🔑 MY VIEW
The preferred setup is strongly bullish, favoring a confirmed daily candle close above the ₹667.00 neckline to trigger the Cup & Handle breakout. The solid base formation above the ₹579.00 trough indicates healthy accumulation before the breakout push.
The bullish continuation thesis activates once price trades and closes above ₹667.00 (BUY Entry), opening the path toward ₹755.00 (TARGET 1 / +13.19%), establishing support inside the ₹733.00 – ₹778.95 consolidation zone, and driving toward TARGET 2 at ₹843.00 (+26.39% from BUY Entry) and the macro exit target at ₹909.00 (+36.28% from BUY Entry). The setup invalidates if price experiences a sharp rejection at resistance and closes below the retest shelf at ₹623.00 or the base floor at ₹579.00 (-13.19% SL). A valid breakout requires a solid daily candle close above trigger levels, strictly adhering to the candle-close exit rule if a rejection occurs.
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This is technical analysis based on chart structure, price levels, and visual patterns shown above. It is not financial advice. Market conditions can change and actual price movement may differ from projected levels.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.