Trading Plan for Nifty 50 – 10-Dec-2024
Intro:
On the previous trading day, Nifty witnessed a mix of consolidation and momentum shifts. The Liquidity Zone around 24,767 acted as a crucial resistance level, while support near 24,541.65 helped stabilize the index. The chart shows a No Trade Zone between 24,626.60 and 24,652.35, indicating indecisiveness. A clear trend above or below this range will dictate the next move. Yellow signifies sideways movement, green shows bullish potential, and red highlights bearish breakdowns.
Opening Scenarios:
Intro:
On the previous trading day, Nifty witnessed a mix of consolidation and momentum shifts. The Liquidity Zone around 24,767 acted as a crucial resistance level, while support near 24,541.65 helped stabilize the index. The chart shows a No Trade Zone between 24,626.60 and 24,652.35, indicating indecisiveness. A clear trend above or below this range will dictate the next move. Yellow signifies sideways movement, green shows bullish potential, and red highlights bearish breakdowns.
Opening Scenarios:
- Gap-Up Opening (+100 Points):
If Nifty opens near 24,767 or higher, it will test the Opening Resistance. This level aligns with the Liquidity Zone observed previously.
Action Plan:
A breakout above 24,767 could push the index toward the Profit Booking Zone at 25,053. Enter long positions only if the first 15-minute candle closes above 24,767, with a stop loss at 24,652.35.
If rejection occurs at 24,767, expect a pullback toward 24,652.35. Short positions can be considered below 24,767, targeting the No Trade Zone.
Risk Management Tip: Avoid aggressive positions at key resistance zones. Use limited-risk strategies like debit spreads to manage exposure. - Flat Opening:
If Nifty opens near 24,652.35, it enters the No Trade Zone. This is a neutral region, and waiting for a clear breakout or breakdown is recommended.
Action Plan:
A breakout above 24,652.35 can lead to a bullish move toward 24,767. Initiate long positions with tight stop losses at 24,541.65.
A breakdown below 24,626.60 could trigger bearish momentum, targeting 24,541.65. Consider short trades in this scenario, with stop losses at 24,652.35.
Risk Management Tip: Avoid overtrading in consolidation zones. Use trailing stop losses to secure profits during volatile phases. - Gap-Down Opening (-100 Points or More):
If Nifty opens near 24,541.65 or lower, it will test the Opening Support or even the Buyer's Strong Support near 24,338.
Action Plan:
Watch for a bullish reversal near 24,338. If the price sustains above this level, initiate long positions targeting 24,541.65. Use 24,300 as a stop loss.
A breakdown below 24,338 could lead to a bearish continuation toward 24,200. Short positions can be initiated in such cases, with stop losses above 24,338.
Risk Management Tip: In gap-down scenarios, prioritize hedged strategies like iron condors to mitigate large swings.
Summary & Conclusion:
Resistance Levels: 24,767, 25,053
Support Levels: 24,541.65, 24,338, 24,200
A breakout or breakdown from the No Trade Zone will set the directional bias for the day. Traders should remain cautious and avoid emotional trading.
Disclaimer:
This analysis is for educational purposes only. I am not a SEBI-registered analyst. Please consult your financial advisor or conduct independent research before trading.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.