🔖 Nifty Trading Plan for 20-Jan-2025
📊 Key Levels:
Resistance Zones: 23,318–23,334, Profit Booking Zone: 23,405–23,435
Support Zones: 23,113–23,201, 23,007, 22,962
1️⃣ Gap-Up Opening (100+ points)
If Nifty opens above 23,334:
Look for consolidation or rejection near Profit Booking Zone (23,405–23,435). If rejected, consider a short entry with a target towards 23,334 or 23,269.
Sustained breakout above 23,435 may lead to a rally. Use trailing stop-loss to ride the momentum.
📌 Educational Insight: Gap-ups often signal bullish momentum, but profit booking zones can act as reversal points. Observe price action carefully.
2️⃣ Flat Opening (Within 23,201–23,203)
Monitor opening price reaction within the Golden Retracement Zone (23,113–23,201).
If Nifty holds 23,201, it’s a signal to go long with a target towards 23,318–23,334.
Break below 23,113 could indicate bearish momentum. Short below this level with a target towards 23,007.
📌 Educational Insight: Flat openings are ideal for price action-based trades. Let the first 30 minutes settle before taking positions for the best risk-reward setup.
3️⃣ Gap-Down Opening (100+ points)
If Nifty opens near 22,962–23,007:
Look for bullish reversals within the Trending Shift Zone (22,962–23,007). Go long if strong buying is observed, targeting 23,113.
A breakdown below 22,962 could lead to further weakness. Short positions below this level with a target of 22,880.
📌 Educational Insight: Gap-downs often create opportunities for sharp reversals or continuation trends. Wait for confirmation before entering trades.
📌 Risk Management Tips for Options Trading:
Use hourly candle close as confirmation before entering trades.
For directional trades, avoid over-leveraging and use defined stop-loss.
Hedge positions using spreads to limit risk in volatile markets.
Monitor IV (Implied Volatility) while trading options; high IV can inflate premiums.
🔍 Summary & Conclusion:
For 20-Jan-2025, focus on the key zones:
Watch Golden Retracement Zone (23,113–23,201) for flat openings.
Look for rejection or breakout near 23,405–23,435 in case of gap-ups.
Keep an eye on 22,962–23,007 for possible reversals in gap-down scenarios.
⚠️ Disclaimer: I am not a SEBI-registered analyst. This plan is for educational purposes only. Traders are advised to conduct their own analysis or consult with financial advisors before making any trading decisions.
📊 Key Levels:
Resistance Zones: 23,318–23,334, Profit Booking Zone: 23,405–23,435
Support Zones: 23,113–23,201, 23,007, 22,962
1️⃣ Gap-Up Opening (100+ points)
If Nifty opens above 23,334:
Look for consolidation or rejection near Profit Booking Zone (23,405–23,435). If rejected, consider a short entry with a target towards 23,334 or 23,269.
Sustained breakout above 23,435 may lead to a rally. Use trailing stop-loss to ride the momentum.
📌 Educational Insight: Gap-ups often signal bullish momentum, but profit booking zones can act as reversal points. Observe price action carefully.
2️⃣ Flat Opening (Within 23,201–23,203)
Monitor opening price reaction within the Golden Retracement Zone (23,113–23,201).
If Nifty holds 23,201, it’s a signal to go long with a target towards 23,318–23,334.
Break below 23,113 could indicate bearish momentum. Short below this level with a target towards 23,007.
📌 Educational Insight: Flat openings are ideal for price action-based trades. Let the first 30 minutes settle before taking positions for the best risk-reward setup.
3️⃣ Gap-Down Opening (100+ points)
If Nifty opens near 22,962–23,007:
Look for bullish reversals within the Trending Shift Zone (22,962–23,007). Go long if strong buying is observed, targeting 23,113.
A breakdown below 22,962 could lead to further weakness. Short positions below this level with a target of 22,880.
📌 Educational Insight: Gap-downs often create opportunities for sharp reversals or continuation trends. Wait for confirmation before entering trades.
📌 Risk Management Tips for Options Trading:
Use hourly candle close as confirmation before entering trades.
For directional trades, avoid over-leveraging and use defined stop-loss.
Hedge positions using spreads to limit risk in volatile markets.
Monitor IV (Implied Volatility) while trading options; high IV can inflate premiums.
🔍 Summary & Conclusion:
For 20-Jan-2025, focus on the key zones:
Watch Golden Retracement Zone (23,113–23,201) for flat openings.
Look for rejection or breakout near 23,405–23,435 in case of gap-ups.
Keep an eye on 22,962–23,007 for possible reversals in gap-down scenarios.
⚠️ Disclaimer: I am not a SEBI-registered analyst. This plan is for educational purposes only. Traders are advised to conduct their own analysis or consult with financial advisors 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.