NIFTY : Trading Plan and Levels for 05-Nov-2024On 04-Nov-2024, Nifty showcased a strong downward trend followed by some consolidation. The session closed near 23,990, with critical support levels between 23,725 and 23,579, indicating a potential for a bounce in the coming session. Resistance is seen at 24,021, with a significant zone near 24,163. The Yellow trend indicates potential sideways movement, while the Green trend shows bullish prospects and the Red trend represents a bearish path.
Trading Plan for 05-Nov-2024:
Gap Up Opening (100+ points):
If Nifty opens with a 100+ point gap-up above 24,021, we could see a bullish move towards 24,163 (Intraday resistance). It’s essential to watch if prices sustain above this zone, as crossing this level could target the last intraday resistance of 24,319.
If Nifty fails to sustain above 24,163, expect a sideways move back towards 24,021. Traders should exercise caution here as any rejection from higher levels might signal a potential reversal.
Actionable Plan:
Buy on a sustained move above 24,163, with a target of 24,319.
Stop Loss: Below 24,021 on a 15-minute candle close.
Flat Opening:
If Nifty opens flat around 23,990, the focus will be on the reaction near 24,021 (opening support/resistance). A clear breakout above this level could push Nifty into a bullish zone, aiming for 24,163 and beyond.
However, failure to break this level will lead to a sideways consolidation (Yellow trend) or a possible retest of lower supports near 23,725.
Actionable Plan:
Buy on breakout above 24,021, targeting 24,163.
Sell below 23,953, with a target towards 23,725.
Stop Loss: Place tight stop losses at 23,990.
Gap Down Opening (100+ points):
If Nifty opens with a gap-down near 23,725 or below, the Best Buy Zone comes into play. Watch for bullish price action around this support level. Any strong bounce from here could lead to a recovery back to 23,953 or higher.
In case Nifty fails to hold 23,725, a further decline towards 23,579 could be on the cards, with a potential for a deeper correction.
Actionable Plan:
Buy near 23,725 with a target of 23,953.
Sell below 23,725, aiming for 23,579.
Stop Loss: Below 23,725 on a 15-minute candle close.
Risk Management Tips for Options Trading:
Always use strict stop losses, especially on volatile days.
Avoid holding positions overnight unless there’s a strong directional bias.
For options traders, consider entering at-the-money or slightly out-of-the-money options to benefit from quick price moves while managing risk.
Summary and Conclusion:
The key levels for 05-Nov-2024 are 24,021 for intraday resistance and 23,725 for strong support. A gap-up or flat opening should be monitored closely for breakouts above these resistance levels. A gap-down could provide an excellent buying opportunity near 23,725. Traders should stay cautious and respect the support/resistance zones, waiting for confirmation before taking trades.
Disclaimer: I am not a SEBI-registered analyst. This trading plan is purely based on technical analysis and psychological theories. Please consult with your financial advisor before making any trading decisions.
