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23-Dec-2024 Nifty Trading Plan
On last trading session prices met with the targets on breaking and sustaining below mentioned levels and met with all targets on down side. Strategies for upcoming trading session
Color-Coding:
- []Yellow: Sideways trend. []Green: Bullish trend.
- Red: Bearish trend.
23-Dec-2024 Trading Scenarios:
- Gap Up Opening (+100 points):
If Nifty opens above 23,953 but below 24,058, expect initial resistance at 24,058. Watch for rejection signals such as bearish candlestick patterns (e.g., pin bars or engulfing) to initiate short trades targeting 23,747-23,603.
However, if prices sustain above 24,058, this zone transforms into support, indicating bullish sentiment. Enter long trades cautiously above 24,058 with targets of 24,300-24,400. Use a stop loss at 23,950. - Flat Opening:
A flat opening near 23,631-23,603 suggests the no-trade zone remains intact. Wait for a breakout above 23,747 or a breakdown below 23,603.
Above 23,747: Long trades targeting 23,953-24,058.
Below 23,603: Short trades targeting 23,281-23,194. Use stop losses based on an hourly close for safer risk management. - Gap Down Opening (-100 points or more):
A gap down below 23,603 places immediate focus on the buyer’s support zone at 23,281-23,194. Look for bullish reversal patterns (e.g., hammer or bullish engulfing) within this zone to initiate long trades.
If prices break below 23,194, bearish momentum could intensify. Short trades targeting 23,000-22,850 become viable. Maintain a stop loss above 23,281 for these positions.
Risk Management Tips for Options Trading:
- []Use defined risk strategies like buying options or limited-loss spreads.
[]Avoid aggressive averaging when trades move against your position.
[]Always calculate the maximum loss potential before entering trades.
[]Exit positions if the index stays in the no-trade zone for extended periods.
Summary & Conclusion:
Nifty’s trading action on 23-Dec-2024 will revolve around the critical zones discussed. Respect the defined levels and avoid impulsive trades within the no-trade zone. Wait for confirmation before entering trades to maximize risk-reward ratios.
Disclaimer:
I am not a SEBI-registered analyst. This analysis is for educational purposes only. Please consult your financial advisor before making trading decisions.