NIFTY : Levels and Trading Plan for 11-Nov-2024
Nifty Trading Plan – 11-Nov-2024
Intro:
On the previous trading day, Nifty exhibited a mix of sideways and bearish trends, giving us valuable support and resistance zones. The yellow trend zones indicated periods of sideways movement, green zones showed bullish momentum, and red zones highlighted bearish pressure. We’re seeing strong resistance at 24,437 (Last Resistance for Intraday) and crucial support levels around 23,970 (Best Buy Zone for Buyers). Here’s how to approach the 11-Nov session based on potential market openings.
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Trading Plan for All Opening Scenarios:
Gap Up Opening (100+ Points):
- If Nifty opens with a gap up above the First Resistance for Trend Reversal at 24,327, observe if it sustains above this level for the first 15-30 minutes.
- Bullish Scenario: A sustained move above 24,327 can trigger a bullish trend toward the Last Resistance for Intraday at 24,437. If it continues its momentum, target the Sideways Zone/Resistance for Retracement at 24,714 as the next potential upside. Enter with caution, aiming to buy on retracements toward the 24,327 level.
- Bearish Scenario: If it fails to hold above 24,327 and dips back, expect a retracement toward the Opening Support zone around 24,164. Aggressive traders can look for short entries below this level with a target back toward the Best Buy Zone at 23,970.
Flat Opening:
- If Nifty opens flat around the 24,110 mark, wait for the price to settle for 15-30 minutes before taking any positions.
- Bullish Scenario: A move above the First Resistance at 24,288 can give bullish momentum with targets toward 24,327 and potentially 24,437. Enter long positions if prices show strong support around 24,288.
- Bearish Scenario: If Nifty breaks below the Opening Support level at 24,106, it could signal weakness, with targets around the Best Buy Zone at 23,970. Look for short entries if price action confirms bearish sentiment below 24,106.
Gap Down Opening (100+ Points):
- A gap down opening below 24,000 could lead to initial volatility. Monitor how it behaves around the Best Buy Zone for Buyers at 23,970.
- Bullish Scenario: If Nifty holds above 23,970 and shows signs of a reversal, consider going long with targets around the Opening Support level at 24,106.
- Bearish Scenario: If selling pressure continues and Nifty breaks below 23,970, expect a deeper pullback toward the Do or Die Level for Buyers at 23,728. Look for short opportunities if it sustains below 23,970 with a strict stop loss above the 23,970 level.
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Risk Management Tips for Options Trading:
- Use limited-risk strategies such as spreads to control risk.
- Set stop losses based on daily candle close to avoid getting stopped out by intraday volatility.
- Adjust position sizing based on your risk tolerance; avoid over-leveraging.
- Consider exiting positions near target levels rather than waiting for exact points. Options premiums can decay quickly.
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Summary and Conclusion:
The market structure suggests key levels to watch for support and resistance. If Nifty sustains above key resistance at 24,327, it could lead to a bullish move, while a breach below support at 23,970 could prompt further downside. Be patient, wait for confirmation at each level, and manage risk effectively.
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Disclaimer:
I am not a SEBI-registered analyst. This plan is for educational purposes only. Please conduct your analysis or consult a financial advisor before making any trading decisions.
