Support is a price where a falling stock has repeatedly stopped falling. Resistance is a price where a rising stock has repeatedly stopped rising. They are the two most practical concepts in charting — because they give you real levels to plan entries, targets and stops around.
Memory. Everyone who bought near ₹500 and watched the stock fall remembers ₹500 — when price returns there, some sell in relief, creating resistance. Everyone who missed the bounce at ₹400 waits for the next visit, creating support. Levels work because thousands of people watch the same chart.
Levels are zones, not laser lines — expect overshoots of a percent or two. And stocks that have gone parabolic often have no meaningful support for 20-30% below the price; any stop there is a guess. When there's no floor nearby, the honest answer is that risk can't be defined — which is itself useful information.
▶ Check any stock free →Educational only — not financial advice. This guide explains general concepts for learning purposes and is not a recommendation to buy or sell any security. Always do your own research and consult a licensed financial adviser before investing.