Long

NIFTY : Trading levels and Plan 20-Feb-2025

We will analyze three possible opening conditions and strategize accordingly. Key levels are marked for better decision-making.

🔹 Scenario 1: Gap-Up Opening (100+ points)
If NIFTY opens above 23,008 (last intraday resistance):

[] Sustaining above 23,008 can lead to an upside move towards 23,158 - 23,191 (Profit Booking Zone). If price sustains above this, we may see further bullish momentum.
[] Watch for rejection at 23,158-23,191—a reversal here could trigger selling pressure, providing a shorting opportunity with a target back to 23,008.
Aggressive traders can look for quick scalping opportunities on breakouts with strict stop-loss.

✅ Trade Plan:
✔️ Buy on breakout & retest of 23,008, targeting 23,158 - 23,191.
✔️ Short if price rejects 23,158-23,191, aiming for 23,008.

⚠️ Risk Tip: If price consolidates near 23,008, avoid trading immediately—wait for a strong direction confirmation.

🔹 Scenario 2: Flat Opening (Near 22,954 - 22,914)
If NIFTY opens within the 22,914 - 22,954 zone (Opening Resistance/Support), this could act as a No Trade Zone due to potential choppiness.
1. [] A decisive breakout above 22,954 can lead to a move towards 23,008 and higher levels.
  [] A breakdown below 22,886 (Opening Support) could trigger selling towards 22,795.
  
  ✅ Trade Plan:
  ✔️ Buy above 22,954, targeting 23,008 and 23,158.
  ✔️ Sell below 22,886, targeting 22,795.
  
  ⚠️ Risk Tip: Avoid trading inside the No Trade Zone (22,895 - 22,949) unless a clear breakout happens with strong volume.
  
  🔹 Scenario 3: Gap-Down Opening (100+ points)
  If NIFTY opens below 22,795, it signals weakness.
  1. [] Immediate support exists at 22,740 - 22,758 (Last Intraday Support). If this holds, expect a possible pullback towards 22,886 - 22,914.
    [] If 22,740 breaks, expect further downside towards 22,636 (Buyer’s Support).
    
    ✅ Trade Plan:
    ✔️ Buy near 22,740, targeting a pullback to 22,886 - 22,914.
    ✔️ Short below 22,740, targeting 22,636 and lower.
    
    ⚠️ Risk Tip: In a gap-down scenario, watch for consolidation before entering. A weak opening doesn’t always mean immediate selling—wait for confirmation.
    
    📌 Risk Management Tips for Options Trading 💡
    🛑 Always use a strict stop-loss to protect capital.
    🎯 Take partial profits at key levels to secure gains.
    🕰️ Avoid overtrading—wait for clear price action confirmation.
    💰 Use proper position sizing to manage risk.
    
    📌 Summary & Conclusion 🎯
    ✔️ Bullish Above: 23,008 → Target: 23,158 - 23,191.
    ✔️ Bearish Below: 22,886 → Target: 22,795 - 22,740.
    ✔️ No Trade Zone: 22,895 - 22,949 (Wait for breakout).
    
    Trade with a plan, manage risk wisely, and stay disciplined. ✅🚀
    
    ⚠️ Disclaimer
    I am not a SEBI-registered analyst. This analysis is for educational purposes only. Please consult your financial advisor before making any trades. 📉📈

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Disclaimer

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Also on:

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.