Trading Plan for Nifty - 30-Dec-2024
Intro: Review of Previous Plan (27-Dec-2024)
In the previous trading plan, we highlighted key zones, including the No Trade Zone (23,761–23,830), the Last Intraday Resistance (24,010–24,058), and the Buyer’s Support at 23,427. As evident in the uploaded chart, Nifty traded within the highlighted zones, respecting the identified levels. The sideways momentum (Yellow trend) continued for most of the session, and an intraday attempt to breach the resistance zone was met with selling pressure, resulting in a close near the No Trade Zone.
Key Color Codes in the Plan:
Yellow Trend: Sideways
Green Trend: Bullish
Red Trend: Bearish
Trading Plan for 30-Dec-2024:
Risk Management Tips for Options Trading:
Use defined risk strategies such as debit spreads to limit potential losses.
Avoid holding positions close to expiry to reduce time decay impact.
Trade with 1–2% of your total capital per trade to manage exposure.
Be cautious of high IV (Implied Volatility) spikes during gap openings.
Summary and Conclusion:
The plan emphasizes trading with confirmation signals and respecting highlighted zones.
Stay disciplined in the No Trade Zone to avoid unnecessary risks.
Follow the breakout and breakdown scenarios with defined stop-loss levels to maintain a favorable risk-reward ratio.
Disclaimer:
I am not a SEBI-registered analyst. All views are for educational purposes only. Traders are advised to do their analysis or consult with a financial advisor before making trading decisions.
Intro: Review of Previous Plan (27-Dec-2024)
In the previous trading plan, we highlighted key zones, including the No Trade Zone (23,761–23,830), the Last Intraday Resistance (24,010–24,058), and the Buyer’s Support at 23,427. As evident in the uploaded chart, Nifty traded within the highlighted zones, respecting the identified levels. The sideways momentum (Yellow trend) continued for most of the session, and an intraday attempt to breach the resistance zone was met with selling pressure, resulting in a close near the No Trade Zone.
Key Color Codes in the Plan:
Yellow Trend: Sideways
Green Trend: Bullish
Red Trend: Bearish
Trading Plan for 30-Dec-2024:
- Scenario 1: Gap-Up Opening (100+ points above 23,930)
If Nifty opens above 23,930, the market will be entering a bullish momentum zone. Look for a retest of the 24,010–24,058 resistance zone.
If the resistance is broken and sustained (hourly close above 24,058), initiate a long position targeting the retracement profit-booking resistance at 24,310.
Place a stop-loss below the breakout level at 23,980.
If the resistance holds, wait for rejection signals (red bearish candles) to initiate a short trade with a target of 23,761. - Scenario 2: Flat Opening (23,800–23,850)
A flat opening indicates consolidation within the No Trade Zone (23,761–23,830).
Avoid aggressive entries until Nifty decisively breaks out of the zone.
A breakout above 23,830 may signal a bullish move toward 24,010. Look for confirmation with volume before entering a long trade.
On the downside, a breakdown below 23,761 could push Nifty toward 23,636, the Last Intraday Support. In this case, initiate a short position with a stop-loss above 23,800. - Scenario 3: Gap-Down Opening (100+ points below 23,730)
A gap-down opening below 23,730 signals bearish momentum. Observe if the price approaches the Buyer’s Support at 23,427.
If the support holds, watch for reversal patterns (e.g., hammer or bullish engulfing) to initiate a long position targeting 23,761.
A breakdown below 23,427 could extend the bearish trend to 23,300 or lower. Initiate a short trade if the breakdown is confirmed with a stop-loss above 23,500.
Risk Management Tips for Options Trading:
Use defined risk strategies such as debit spreads to limit potential losses.
Avoid holding positions close to expiry to reduce time decay impact.
Trade with 1–2% of your total capital per trade to manage exposure.
Be cautious of high IV (Implied Volatility) spikes during gap openings.
Summary and Conclusion:
The plan emphasizes trading with confirmation signals and respecting highlighted zones.
Stay disciplined in the No Trade Zone to avoid unnecessary risks.
Follow the breakout and breakdown scenarios with defined stop-loss levels to maintain a favorable risk-reward ratio.
Disclaimer:
I am not a SEBI-registered analyst. All views are for educational purposes only. Traders are advised to do their analysis or consult with a financial advisor before making trading decisions.
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.