Reading NSE Charts on Stockr
Reading NSE Charts on Stockr
Now that you understand chart types, timeframes, volume, support and resistance, and patterns, it is time to put it all into practice. Stockr provides interactive charts for every stock listed on the NSE, and this lesson walks you through how to use them effectively.
Navigating the Stock Chart Page
When you open any stock on Stockr — say Safaricom (SCOM) — you will find the chart prominently displayed on the stock detail page. Here is what you can do:
- Switch chart types — Toggle between line and candlestick views to get different perspectives on the price action.
- Change timeframes — Select from preset periods (1 month, 3 months, 6 months, 1 year, 5 years) or set a custom date range to zoom into specific periods of interest.
- Overlay moving averages — Add the 50-day and 200-day simple moving averages to see trend direction and potential crossover signals.
- Check volume — Volume bars are displayed beneath the price chart, allowing you to confirm moves and spot divergences.
A Practical Walkthrough
Here is a step-by-step approach when analysing an NSE stock chart on Stockr:
- Start with the big picture — Set the timeframe to 1 year or longer. What is the overall trend? Uptrend, downtrend, or sideways?
- Identify key levels — Can you spot clear support and resistance levels where the price has bounced or reversed multiple times?
- Check moving averages — Is the price above or below the 200-day SMA? Where is the 50-day SMA relative to the 200-day SMA?
- Zoom in — Switch to a 3-month or 1-month view and look at recent candlestick patterns. Any Dojis, Hammers, or Engulfing patterns at key levels?
- Confirm with volume — Are recent moves supported by volume? Or is there divergence?
Combining Chart Analysis with Fundamentals
Charts tell you what the market is doing, but fundamentals tell you why. Use the stock detail page on Stockr to check the company's P/E ratio, dividend yield, and recent earnings alongside the chart. The best investment decisions come from aligning what the chart shows with what the fundamentals support.