Plan vs. Actual Performance (23-Dec-2024) - Nifty:
In today’s session, Nifty closely followed the levels and zones highlighted in the trading plan:
In today’s session, Nifty closely followed the levels and zones highlighted in the trading plan:
- []The index opened within the Opening Resistance/Support Zone (No Trade Zone), as indicated in the plan. Price action remained muted here, showing indecision, aligning with the expectation of limited opportunities in this area.
[]The attempted move towards the Last Intraday Resistance Zone (23,953-24,058) failed, with prices reversing near resistance, confirming the bearish projection (red trend). - Later in the session, the index approached the Buyer’s Support Zone (23,194-23,281). Prices showed signs of stabilization, reflecting the plan's green trend projection for potential reversal or support testing.
Key Takeaway: The plan accurately captured the market's reaction to critical levels, reinforcing the importance of patience in the No Trade Zone and the effectiveness of the support/resistance zones for planning entries.
This reflects the value of adhering to a well-defined trading framework.
This analysis will help us prepare for the trading day on 24-Dec-2024, considering different opening scenarios.
Trading Plan for 24-Dec-2024- Gap Up Opening (100+ points above 23,747.20)
If the market opens above 23,847.20, it indicates a strong bullish sentiment. The first resistance level to watch is 23,863.00 (Opening Resistance). If the price sustains above this level, the next target is 23,976.00 (Last Intraday Resistance for retracement).
In case the price breaks above 23,976.00, the next target is 24,009.00. A sustained move above this level can lead to the Profit Booking zone at 24,128.00.
If the price fails to sustain above 23,863.00, look for a potential retracement to 23,739.30. This could indicate a sideways trend (yellow line) or a bearish reversal (red line). - Flat Opening (around 23,747.20)
A flat opening suggests indecision in the market. The immediate level to watch is 23,739.30. If the price holds above this level, it could indicate a bullish trend (green line) towards 23,863.00.
If the price breaks below 23,739.30, the next support level is 23,611.00 (Opening Support Zone at Buyer’s retracement zone). A break below this level could lead to a bearish trend (red line) towards 23,547.00.
Monitor the price action around 23,863.00 for potential resistance. A break above this level could lead to targets of 23,976.00 and 24,009.00. - Gap Down Opening (100+ points below 23,747.20)
A gap down opening below 23,647.20 indicates bearish sentiment. The first support level to watch is 23,611.00. If the price holds above this level, it could indicate a potential retracement (yellow line) towards 23,739.30.
If the price breaks below 23,611.00, the next target is 23,547.00. A sustained move below this level could lead to further downside towards 23,447.00.
In case of a retracement, monitor the price action around 23,739.30 for potential resistance. A break above this level could lead to targets of 23,863.00 and 23,976.00.
- Always use stop-loss orders to limit potential losses.
- Avoid over-leveraging your positions; trade within your risk tolerance.
- Diversify your trades to spread risk across different assets or strategies.
- Keep an eye on implied volatility, as it can significantly impact options pricing.
- Regularly review and adjust your trading plan based on market conditions.
In summary, the trading plan for 24-Dec-2024 involves monitoring key support and resistance levels based on the opening scenario. By understanding the potential price movements and trends (yellow for sideways, green for bullish, and red for bearish), traders can make informed decisions. Always practice good risk management to protect your capital.
Disclaimer: I am not a SEBI registered analyst. This analysis is for educational purposes only and should not be considered as financial advice. Always do your own research before making any trading decisions. - Gap Up Opening (100+ points above 23,747.20)
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.