NIFTY : Trading levels and Plan for 04-Dec-2024Before I begin, I kindly ask you to hit boost or like if you enjoy my analysis. Your support keeps me motivated to dedicate my time to creating these charts for you, completely free!
Nifty Trading Plan for 04-Dec-2024 📈
On the previous trading day, Nifty witnessed a significant rally towards the completion zone of Wave C, form the the Opening important range for buyer's and Sellers (mentioned in yesterday's Plan. For upcoming trading session, the structure also highlighted a Change of Character (ChoCH) near ₹24,483, which now acts as an opening support/resistance level. Key levels such as ₹24,355 (opening resistance) and ₹24,189 (last intraday/swing support) indicate pivotal areas for monitoring price action. Yellow indicates a sideways trend, green represents bullish momentum, and red marks bearish trends.
Here’s a structured trading plan for all opening scenarios:
Gap Up Opening (+100 points or more above ₹24,445)
Profit Booking Zone (₹24,650-₹24,692): A gap-up opening near or within this zone could face sideways consolidation or immediate rejection, as it aligns with the first target of Wave C completion.
Action Plan:
Entry: Short near ₹24,692 after observing bearish reversal patterns like shooting stars or bearish engulfing.
Target: ₹24,483 (opening support/resistance zone) and ₹24,413.
Stop Loss: Above ₹24,730 to avoid false breakout risks.
Breakout Potential Above ₹24,692: Sustained buying above ₹24,692 with strong momentum could trigger bullish continuation.
Action Plan:
Entry: Long above ₹24,692 after a 15-minute candle closes above this level.
Target: ₹24,800-₹24,850.
Stop Loss: Below ₹24,600 to safeguard against pullbacks.
Flat Opening (Near ₹24,445)
Opening Support/Resistance Zone (₹24,413-₹24,483): Flat openings indicate indecision. If Nifty sustains above ₹24,483, it may show bullish strength; otherwise, a fall back to ₹24,413 is likely.
Action Plan for Bullish Scenario:
Entry: Long above ₹24,483 with strong buying pressure.
Target: ₹24,650-₹24,692.
Stop Loss: Below ₹24,413 for risk management.
Action Plan for Bearish Scenario:
Entry: Short below ₹24,413 after confirming selling pressure.
Target: ₹24,355 and ₹24,300.
Stop Loss: Above ₹24,483 to limit losses.
Retracement Monitoring at ₹24,355: If the price consolidates near ₹24,355, observe breakout patterns for direction.
Gap Down Opening (-100 points or more below ₹24,445)
Testing Swing Support (₹24,189): A gap-down opening below ₹24,300 will test the last intraday/swing support around ₹24,189. Failure to hold this level may result in further downside momentum.
Action Plan:
Entry: Short below ₹24,189 after confirming a bearish breakdown.
Target: ₹24,100 and ₹24,050 (extended downside levels).
Stop Loss: Above ₹24,250 to reduce risk.
Reversal Potential at ₹24,189: Watch for bullish reversal signals such as hammer candles or bullish engulfing near ₹24,189.
Action Plan:
Entry: Long near ₹24,189 with a confirmed reversal signal.
Target: ₹24,300 and ₹24,355.
Stop Loss: Below ₹24,150 to manage risk.
Risk Management Tips for Options Trading
Trade with limited risk strategies like vertical spreads or butterfly spreads to minimize premium losses.
Monitor implied volatility and avoid buying options in high IV environments to prevent premium erosion.
Always hedge directional trades, especially near pivotal resistance or support zones.
Avoid over-trading; focus on quality setups rather than quantity.
Keep risk per trade within 1-2% of your capital to preserve equity.
Summary and Conclusion
Nifty is approaching critical zones, with ₹24,650-₹24,692 as the profit booking/supply area and ₹24,189 acting as the last swing support. Adherence to key levels and disciplined execution will be critical for navigating intraday moves. Let price action confirm the direction before entering trades.
Disclaimer:
I am not a SEBI-registered analyst. This analysis is for educational purposes only. Kindly perform your research or consult a financial advisor before making trading decisions.
