What support and resistance are
Support is a price level where falling prices tend to stop and bounce back up, like a floor. Resistance is a level where rising prices tend to stall and fall back, like a ceiling. They aren't exact lines — they're zones where buyers or sellers have repeatedly stepped in before. Traders draw them on charts to anticipate where price might pause or turn.
Why these levels form
Levels form because of memory and psychology. If a stock bounced off ₹500 three times, traders remember it as support and place buy orders there, which makes the bounce happen again. Round numbers (₹100, ₹500, Nifty 25,000) act as natural levels because so many people set orders at them. Past highs and lows also become reference points the whole market watches.
When levels flip roles
One of the most useful ideas: when price finally breaks through resistance, that old ceiling often becomes the new floor (support), and vice versa. A level that capped prices for months can become the level that holds them up once it's broken. Traders call this role reversal, and it's why old levels stay important even after price moves past them.
Breakouts and false breakouts
A breakout is when price decisively pushes through support or resistance, often on strong volume, signalling a possible new trend. But not every break is real — a false breakout pokes through a level then snaps back, trapping traders who chased it. That's why support and resistance are guides, not guarantees: they tell you where pressure sits, but price can always punch through.
Move the levels above and watch the ball respect them — then take the quick check below.