🔖 Nifty Trading Plan for 21-Jan-2025
📊 Key Levels:
Resistance Zones: 23,404–23,435 (Important Intraday Resistance), Profit Booking Zone: 23,525+
Support Zones: 23,375 (Opening Support/Resistance Zone), 23,245 (Buyer’s Support Zone), 23,114 (Golden Retracement Support)
1️⃣ Gap-Up Opening (100+ points above 23,435)
📍 Analysis: A gap-up above 23,435 signals strong bullish sentiment. However, the profit booking zone above 23,525 can lead to selling pressure.
📌 Action Plan:
📚 Educational Insight: Gap-up openings often trigger profit booking near key resistance levels. Always wait for rejection or breakout confirmation to reduce risk.
2️⃣ Flat Opening (Within 23,344–23,375)
📍 Analysis: A flat opening suggests indecision in the market. The range between 23,344–23,375 will act as a critical zone for direction.
📌 Action Plan:
📚 Educational Insight: Flat openings provide the best opportunity to analyze market sentiment. Allow the first 15–30 minutes to settle before entering trades for better clarity.
3️⃣ Gap-Down Opening (100+ points near or below 23,245)
📍 Analysis: A gap-down near the Buyer’s Support Zone (23,245) or Golden Retracement Support (23,114) can trigger either panic selling or strong buying interest.
📌 Action Plan:
📚 Educational Insight: Gap-down scenarios often create volatility. Support zones like 23,245 and 23,114 can act as reversal points, but their failure may amplify bearish momentum.
⚠️ Risk Management Tips for Options Trading:
✅ Use strict stop-loss levels to minimize losses in volatile markets.
✅ Avoid trading in the first 15 minutes after the opening, as it often exhibits unpredictable price movements.
✅ Consider using strategies like spreads (bull/bear spreads) in high-IV conditions to cap potential losses.
✅ Monitor hourly candle closures for confirmation before entering high-risk trades.
✅ Never over-leverage; trade with an amount you are comfortable risking.
🔍 Summary & Conclusion:
Gap-Up: Watch price action near 23,525; trade rejections or sustained breakouts.
Flat: Observe the reaction within 23,344–23,375; trade breakouts or breakdowns accordingly.
Gap-Down: Look for buying opportunities at 23,245 or 23,114, but respect bearish momentum if these levels fail.
⚠️ Disclaimer: I am not a SEBI-registered analyst. This trading plan is for educational purposes only. Please consult a financial advisor or conduct your own research before trading.
📊 Key Levels:
Resistance Zones: 23,404–23,435 (Important Intraday Resistance), Profit Booking Zone: 23,525+
Support Zones: 23,375 (Opening Support/Resistance Zone), 23,245 (Buyer’s Support Zone), 23,114 (Golden Retracement Support)
1️⃣ Gap-Up Opening (100+ points above 23,435)
📍 Analysis: A gap-up above 23,435 signals strong bullish sentiment. However, the profit booking zone above 23,525 can lead to selling pressure.
📌 Action Plan:
- [] If Nifty consolidates below 23,525, look for rejection signs. A reversal from this zone provides a short trade opportunity targeting 23,435.
[] If Nifty breaks and sustains above 23,525 with strong volume, initiate a long trade, targeting 23,600 or higher. Use a trailing stop-loss to lock in profits. - Avoid trading immediately after the opening; observe the market's behavior for at least 15 minutes to confirm direction.
📚 Educational Insight: Gap-up openings often trigger profit booking near key resistance levels. Always wait for rejection or breakout confirmation to reduce risk.
2️⃣ Flat Opening (Within 23,344–23,375)
📍 Analysis: A flat opening suggests indecision in the market. The range between 23,344–23,375 will act as a critical zone for direction.
📌 Action Plan:
- [] If Nifty struggles to hold above 23,375 and shows signs of rejection, consider a short trade targeting 23,304 or 23,245.
[] If Nifty sustains above 23,375, initiate a long trade targeting 23,404 and then 23,435. Ensure confirmation through volume and price action. - A decisive breakdown below 23,344 may indicate bearish sentiment, providing a shorting opportunity toward 23,304.
📚 Educational Insight: Flat openings provide the best opportunity to analyze market sentiment. Allow the first 15–30 minutes to settle before entering trades for better clarity.
3️⃣ Gap-Down Opening (100+ points near or below 23,245)
📍 Analysis: A gap-down near the Buyer’s Support Zone (23,245) or Golden Retracement Support (23,114) can trigger either panic selling or strong buying interest.
📌 Action Plan:
- [] Look for reversals near 23,245 or 23,114. A strong bounce from these levels can provide a long trade opportunity targeting 23,304 or 23,375.
[] If Nifty sustains below 23,114 with high selling volume, initiate short trades targeting 23,050 or lower. - Avoid rushing into trades during a gap-down; wait for clear signs of reversal or breakdown for better risk management.
📚 Educational Insight: Gap-down scenarios often create volatility. Support zones like 23,245 and 23,114 can act as reversal points, but their failure may amplify bearish momentum.
⚠️ Risk Management Tips for Options Trading:
✅ Use strict stop-loss levels to minimize losses in volatile markets.
✅ Avoid trading in the first 15 minutes after the opening, as it often exhibits unpredictable price movements.
✅ Consider using strategies like spreads (bull/bear spreads) in high-IV conditions to cap potential losses.
✅ Monitor hourly candle closures for confirmation before entering high-risk trades.
✅ Never over-leverage; trade with an amount you are comfortable risking.
🔍 Summary & Conclusion:
Gap-Up: Watch price action near 23,525; trade rejections or sustained breakouts.
Flat: Observe the reaction within 23,344–23,375; trade breakouts or breakdowns accordingly.
Gap-Down: Look for buying opportunities at 23,245 or 23,114, but respect bearish momentum if these levels fail.
⚠️ Disclaimer: I am not a SEBI-registered analyst. This trading plan is for educational purposes only. Please consult a financial advisor or conduct your own 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.