Spotting A Breakout? SEBI RA Rohit Mehta Breaks Down the Cup & Handle Pattern On Nifty Charts

A well-known bullish price pattern is drawing fresh interest on technical charts.

SEBI-registered analyst Rohit Mehta explained the Cup and Handle setup, calling it a classic breakout formation that reflects market psychology—panic, recovery, pause, and renewed confidence. 

The pattern features a rounded U-shaped “cup” followed by a shallow “handle,” and typically forms over weeks to months on higher timeframes, such as weekly or monthly charts.

Mehta said that the handle should not dip more than a third of the cup’s depth, and a breakout above the cup’s high with a volume surge confirms the setup. 

The price target is derived by adding the cup’s depth to the breakout level, while the stop-loss is set below the handle or recent swing low.

He pointed at key traits to watch: a rounded (not V-shaped) base, shallow handle, and strong volume on breakout. 

Mehta also advised combining this pattern with indicators like relative strength index (RSI) versus Nifty50 for added confirmation, noting that the pattern has a higher success rate on weekly timeframes.

As a caution, he noted that not all rounded bottoms qualify as cup patterns, and warned against false breakouts that lack volume support. 

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