🔖 Nifty Trading Plan for 22-Jan-2025
📊 Key Levels:
Resistance Zones: 23,097–23,201, Last Intraday Resistance: 23,330
Support Zones: 22,962, 22,689 (Last Intraday Support)
📊 Key Levels:
Resistance Zones: 23,097–23,201, Last Intraday Resistance: 23,330
Support Zones: 22,962, 22,689 (Last Intraday Support)
- 1️⃣ Gap-Up Opening (100+ points)
If Nifty opens above 23,201:
Watch for price action near the Last Intraday Resistance (23,330). A rejection from this level could offer a short trade opportunity with a target towards 23,201.
A sustained breakout above 23,330 can signal strong bullish momentum, and a long trade with a trailing stop-loss could be beneficial to ride the trend higher towards the next possible profit-taking zone near 23,435.
📌 Educational Insight: Gap-ups above resistance zones can often trigger profit booking or reversal patterns. Always wait for a confirmation candle before entering any trades.
2️⃣ Flat Opening (Within 22,962–23,097)
Focus on the reaction at the Opening Resistance Zone (23,097). If Nifty fails to sustain above this zone, shorting the market with a target towards 22,962 could be favorable.
Conversely, if Nifty holds above 23,097, a long trade targeting 23,201 may be considered, with a tight stop loss below 23,052.
A breakdown below 22,962 may signal bearish momentum, opening short trades towards the Last Intraday Support at 22,689.
📌 Educational Insight: Flat openings provide the best opportunity for observing market sentiment. Let the market settle for the first 15–30 minutes for better clarity before making any trade decisions.
3️⃣ Gap-Down Opening (100+ points)
If Nifty opens near 22,689 or below:
Look for a reversal near the Last Intraday Support (22,689–22,830). A strong bounce here could provide a long trade targeting 22,962 or higher.
However, if Nifty sustains below 22,689, it might indicate further bearishness, and shorting the market with a target toward 22,600 could be considered.
📌 Educational Insight: Gap-down openings often lead to panic or aggressive buying at support levels. It is essential to wait for confirmation through price action and volume before entering trades.
📌 Risk Management Tips for Options Trading:
Use defined stop-loss levels and avoid over-leveraging during volatile market conditions.
Trade spreads (like bull/bear spreads) to limit potential losses during high implied volatility (IV) conditions.
Keep an eye on hourly candle closures for added confirmation of trend direction.
Avoid entering trades within the first 15 minutes of the market opening. Let the market settle to avoid false breakouts or breakdowns.
🔍 Summary & Conclusion:
Gap-Up: Watch for action near 23,201–23,330. Focus on rejection or breakout opportunities.
Flat: Key action zone around 23,097; observe for potential breakouts or breakdowns.
Gap-Down: Look for buying opportunities near 22,689, but be cautious of further bearish trends if support is broken.
⚠️ Disclaimer: I am not a SEBI-registered analyst. This plan is for educational purposes only. Please consult a financial advisor or conduct your own analysis 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.