NIFTY : Intraday Trading levels and Plan for 06-Mar-2025Market Context:
Nifty closed at 22,337, with the following key structural levels:
🔴 Profit Booking Zone: 22,635
🟠 No Trade Zone: 22,356 - 22,462
🟢 Opening Support: 22,200 - 22,230
🟩 Last Intraday Support: 22,165 - 22,057
Considering a 100+ point gap opening, let's analyze the possible trading scenarios for the day.
🟢 Scenario 1: Gap-Up Opening (100+ Points Above 22,450)
If Nifty opens above 22,450, it moves into or above the No Trade Zone (22,356 - 22,462).
Sustaining above 22,462 – If the market holds this level with strong momentum, Nifty can rally toward the Profit Booking Zone at 22,635.
Rejection from 22,462 – If price struggles to break above 22,462, it may pull back toward the previous resistance at 22,356, which now acts as support.
If price consolidates inside the No Trade Zone, it signals uncertainty, and traders should wait for a clear direction before taking action.
🔹 Trading Plan:
Go long only if Nifty sustains above 22,462 on an hourly close, targeting 22,635.
Sell below 22,356 if rejection is observed, with a target of 22,289.
Options traders can consider 22,500 CE for long trades and 22,400 PE if rejection occurs.
🟡 Scenario 2: Flat Opening (Within 22,300 - 22,350)
A flat opening near 22,346 places Nifty in a neutral range, requiring confirmation for the next move.
A move above 22,356 will push the index toward the No Trade Zone (22,356 - 22,462). If sustained, a breakout above 22,462 can open room for higher levels.
A drop below 22,300 brings the price closer to the Opening Support Zone (22,200 - 22,230), making this level crucial for short-term buyers.
If price trades between 22,300 - 22,356, wait for a decisive breakout before entering trades.
🔹 Trading Plan:
Avoid taking trades inside the No Trade Zone and wait for a breakout.
Go long above 22,462, targeting 22,635.
Sell below 22,300 for a move toward 22,200, with stop-loss at 22,356.
Options traders can use 22,400 CE for longs and 22,300 PE for shorts.
🔴 Scenario 3: Gap-Down Opening (100+ Points Below 22,200)
A gap-down near 22,200 - 22,057 will bring price into the Opening Support & Last Intraday Support Zones.
Holding 22,200 – If price finds support here, a strong bounce can push Nifty back toward 22,356.
Breaking 22,165 – If selling pressure persists, the next downside target is 22,057, which is the last major support.
If price enters the 22,057 - 22,165 range, this zone could act as a major reversal point based on previous demand zones.
🔹 Trading Plan:
Look for buying opportunities at 22,200 if price shows reversal signals.
If breakdown below 22,165 occurs, wait for confirmation before shorting toward 22,057.
Options traders can use 22,200 PE for breakdown trades and 22,100 CE for bounces.
📊 Risk Management Tips for Options Trading
✅ Use Stop Loss on an Hourly Close Basis – Avoid holding options without confirmation of direction.
✅ Avoid Trading in the No Trade Zone – Let price break out before taking a position.
✅ Monitor India VIX – If volatility is high, premiums may decay faster. Avoid unnecessary trades.
✅ Partial Profit Booking is Key – Secure profits at resistance & support levels instead of waiting for full targets.
✅ Avoid Holding Trades Overnight – Unless there is a strong directional bias, overnight positions carry additional risk.
📌 Summary & Conclusion
Bullish Scenario: Above 22,462, Nifty can rally toward 22,635.
Neutral Zone: If trading between 22,300 - 22,356, wait for confirmation before entering trades.
Bearish Scenario: Below 22,165, weakness can extend toward 22,057, where a bounce is likely.
🔹 Best Risk-Reward Trades:
Buy near 22,200 if support holds.
Sell below 22,165 for a breakdown.
Buy only on a confirmed breakout above 22,462.
⚠️ Disclaimer:
I am not a SEBI-registered analyst. This analysis is for educational purposes only. Please conduct your own research or consult a financial advisor before making any trading decisions.
