NIFTY : Trading Plan and Levels for 30-Oct-2024
Intro:
On the previous trading day, Nifty demonstrated a robust recovery from the exact level that mentioned as last intraday support in yesterday plan, with the price reaching new resistance levels and showing strong buying momentum. Key zones have been established for tomorrow's session, with yellow indicating a sideways trend, green showing a bullish trend, and red representing a bearish trend. Here’s a strategy based on different opening scenarios.
Trading Plan for 30-Oct-2024
Gap Up Opening (100+ points above)
If Nifty opens with a 100+ points gap up, it is likely to encounter resistance near the 24,564 level, marked as the Resistance for Sideways/Retracement at BoS zone . If the index sustains above this level, we could see an upward movement toward the Profit Booking Zone around 24,758 . However, if it fails to hold above 24,564 , expect a retracement towards 24,485 or the Opening Support level at 24,409 .
– A strong reversal from the resistance levels could lead to a test of the Buyers Support at retracement at 24,312 .
Flat Opening (within 50 points of the previous close)
With a flat opening, focus on the price action near the 24,454 level. A breakout above 24,485 could initiate a bullish run towards 24,564 and eventually towards the upper resistance level at 24,758 . However, failure to maintain momentum above 24,454 could result in a sideways pattern around 24,409 (Opening Support) or even a potential downward trend towards 24,312 .
– A break below 24,312 would indicate further weakness, aiming for the Last Intraday Support at 24,214 .
Gap Down Opening (100+ points below)
In a gap-down scenario, Nifty is likely to find initial support at 24,312 . If this level holds, there might be a bounce back towards 24,454 . Sustaining above 24,454 could shift the sentiment towards bullish, aiming for 24,564 as the next resistance. However, if 24,312 fails to provide support, expect further declines towards the Last Intraday Support at 24,214 .
– Any continued weakness below 24,214 could lead to additional selling pressure.
Risk Management Tips for Options Trading
For options trading, keep position sizes manageable, especially on high-volatility days to reduce exposure to unexpected swings.
Use trailing stops to protect profits, particularly when the index approaches major resistance/support levels.
Consider deploying options spreads to limit risk, especially if the market appears choppy.
Summary and Conclusion
For 30-Oct-2024, the primary focus remains on the 24,564 resistance level and 24,312 as a critical support. A flexible approach to price action around these zones, combined with disciplined stop-losses, can help manage risks effectively. Monitoring the initial price action is essential to gauge the trend for the day.
Disclaimer:
I am not a SEBI-registered analyst. The analysis above is based on technical levels and reflects my personal viewpoint. Please perform your analysis or consult a financial advisor before making any trading decisions.
