NIFTY opened with a gap-down of around 50 points. The first hour was volatile, forming sharp V-shaped moves on both sides, indicating indecision rather than direction.
After the initial volatility, the market consolidated until around 12:00 PM, where it re-tested the 25,507 support zone. From that level, price broke upward toward 25,587, shifting short-term structure bullish.
Following this move, the index formed a rising channel. There was one downside breakout attempt that initially appeared valid, but it turned out to be a fake breakdown, after which price reversed and eventually rallied more than 100 points upward.
The Trading Mistake
Before the final upside breakout, during the fake breakdown attempt, I entered:
- 24 Feb 25500 PE @ 135
- Initial SL: 128
Instead of respecting the stop-loss:
- I moved it to 125
- Then to 120
- Finally, I canceled it completely
This was the core mistake.
In my mind, I justified it by assuming operators were attempting to hunt stop-losses. I ignored what price was actually showing. I also failed to check higher timeframes (15m, 1H), which would have shown the broader bullish structure forming.
Although the entry was based on a resistance test and breakdown attempt, the failure to:
- Respect the stop-loss
- Validate structure on higher timeframes
turned a manageable loss into a position I am now holding.
Current Position
I am still holding the trade, attempting to offset it. With expiry approaching tomorrow, I am choosing to take the risk and see how it unfolds.
Important Reflection
The real issue was not the entry.
The issue was changing risk after entering.
Moving stops based on fear of “operator manipulation” is emotional reasoning, not structural analysis.
The chart did not cost me.
Breaking my own risk rule did.
Additional Error
I entered the 25500 PE at the 0.5 Fibonacci retracement, which is a neutral level. The structure had not broken, and higher lows were still intact.