NIFTY : Levels and Plan for 03-Dec-2024Trading Plan for Nifty - 03-Dec-2024
Previous Day’s Chart Pattern Analysis:
On 02-Dec-2024, Nifty witnessed significant volatility after finding support from the mentioned support level and could manage to close near high. The index seeing resistance at 24,413, indicating profit booking near this level, while support was observed at 24,204, suggesting buyer accumulation. The yellow trend in the chart reflects sideways consolidation, green lines represent bullish moves, and red lines indicate bearish patterns. For today, the key zones from the chart will play a crucial role in determining market sentiment.
Opening Scenarios for 03-Dec-2024:
Scenario 1: Gap Up Opening (100+ Points Above 24,275)
If Nifty opens with a significant gap up above 24,375, monitor whether it sustains above the 24,413 Resistance/Support for Sideways.
- Action Plan:
- If the price stays above 24,413, look for bullish momentum towards the 24,483 Last Resistance for Intraday. Enter long positions with a target of 24,483, maintaining a stop-loss at 24,326.
- If Nifty fails to sustain above 24,413, a pullback towards 24,326 Opening Resistance/Support Zone is possible. Observe price action here before taking new trades.
- Risk Management Tip: Avoid chasing the market if the gap up is too steep, as it might lead to profit booking. Opt for spreads or hedge your positions with options.
Scenario 2: Flat Opening (Near 24,275)
In case of a flat opening around 24,275, focus on the Opening Resistance/Support Zone at 24,326.
- Action Plan:
- If Nifty breaks above 24,326 with strong volume, initiate long trades targeting 24,413, and then 24,483. Keep a stop-loss at 24,204 Opening Support.
- Conversely, if the price struggles to break 24,326 and slides below 24,275, a test of 24,204 is likely. In such a case, short positions can be considered with a target of 24,087, keeping a stop-loss at 24,326.
- Risk Management Tip: Allow the first 15-30 minutes for market stability to avoid false breakouts. Use options to trade breakouts conservatively.
Scenario 3: Gap Down Opening (100+ Points Below 24,275)
A gap-down opening below 24,175 would bring 24,087 Support Zone into focus.
- Action Plan:
- If the index holds above 24,087, expect a bounce towards 24,204 Opening Support. This could be an ideal point to go long with a stop-loss at 23,964.
- If Nifty breaches 24,087, further downside towards 23,964 is probable. In this case, short positions can be initiated with targets of 23,964, maintaining a stop-loss at 24,204.
- Risk Management Tip: In a bearish scenario, avoid aggressive trades and use protective puts to limit downside risk.
Risk Management Tips for Options Trading:/b]
Position size should be limited to 2% of your capital per trade.
Use options strategies like Iron Condors or Bull Put Spreads to manage risk in volatile conditions.
Always hedge directional trades with protective options to avoid heavy losses during sudden reversals.
Summary and Conclusion:
Today's trade revolves around key levels at 24,413, 24,326, and 24,204.
Bullish scenario: Sustained trades above 24,413 could lead to higher targets of 24,483.
Bearish scenario: A breakdown below 24,087 may open the door for further weakness towards 23,964.
Sideways scenario: Consolidation is likely between 24,204 and 24,326, requiring patience for a breakout.
Disclaimer:
I am not a SEBI-registered analyst. This analysis is for educational purposes only. Traders are advised to conduct their research or consult a financial advisor before making trading decisions.
