Intro: Previous Day's Plan vs. Actual Chart Movement
In the trading plan for 2-Jan-2025, key levels worked exactly as predicted in plan
https://www.tradingview.com/chart/NIFTY/hiqMaHEb-NIFTY-Trading-Levels-and-Plan-for-02-Jan-2025/
Price movement respected these levels, The bullish structure remained intact for the day, with significant opportunities for intraday gains.
Trading Plan for 3-Jan-2025
- If Market Opens Gap Up (100+ Points Above Previous Close):
A gap-up opening above the Opening Resistance Zone (24,312) signals strength. Monitor price behavior for consolidation or sustained trading above this level. Sustaining above 24,312 could lead to a move towards the Last Resistance for Intraday (24,559).
If prices fail to hold above 24,312 and retrace, expect a pullback toward the Opening Support/Resistance Zone (24,159-24,167).
📈 Action Plan:
Look for long positions above 24,312 after a 15-minute candle close. Use stop loss at 24,167.
Avoid short positions unless there’s clear rejection with bearish confirmation.
📊 Trend Indicators:
Green: Bullish Move Expected. - If Market Opens Flat (Near Previous Close):
Observe price action near the Opening Support/Resistance Zone (24,159-24,167). Sustained trading above this zone could trigger a move toward 24,312.
A breakdown below 24,159 would indicate weakness, and prices could test the Opening Support Zone (24,016-24,058).
📈 Action Plan:
For long trades, wait for price to break above 24,167 and confirm with volume. Use stop loss at 24,016.
For short trades, consider entry below 24,159 with a target of 24,016 and a stop loss at 24,167.
📊 Trend Indicators:
Yellow: Sideways Trend Expected. - If Market Opens Gap Down (100+ Points Below Previous Close):
A gap-down opening near 23,970 or the lower end of the Opening Support Zone (24,016-24,058) might provide a recovery opportunity. Monitor price action for a bounce back to 24,159.
If prices fail to sustain above 23,970, expect further downside toward the Last Intraday Support (23,815).
📈 Action Plan:
For long positions, wait for recovery above 23,970 with bullish confirmation. Use stop loss at 23,815.
For short trades, consider entry below 23,970 with a target of 23,815 and a stop loss at 24,016.
📊 Trend Indicators:
Red: Bearish Move Expected.
Risk Management Tips for Options Trading:
Always calculate position sizing based on risk tolerance.
Use stop-loss orders to minimize losses, especially in high-volatility scenarios.
Avoid overtrading; wait for clear confirmation of price action before entering trades.
For intraday options, consider exiting positions by 3:15 PM to avoid overnight risk.
Summary and Conclusion:
The key levels for Nifty on 3-Jan-2025 are:
Resistance: 24,312 and 24,559.
Support: 24,016-24,058 and 23,815.
Use price action and trend behavior (Green for bullish, Yellow for sideways, and Red for bearish) to guide your trades. Stick to the plan, and prioritize risk management.
Disclaimer:
This trading plan is for educational purposes only. I am not a SEBI-registered analyst. Please consult your financial advisor before making any 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.