NIFTY : Trading Plan and levels for 16-Dec-2024Trading Plan for Nifty 16-Dec-2024
Intro: Yesterday's Plan vs Actual
The chart uploaded for 15-Dec-2024 accurately depicted the market's movement. As anticipated, Nifty faced sharp recovery from mentioned zone after a sharp decline in prices. Monday’s plan builds on these insights, focusing on opening scenarios and trading strategies.
Plan for Different Opening Scenarios
Scenario 1: Gap-Up Opening (100+ Points Above 24,781)
If Nifty opens significantly higher, near or above 25,053 :
Expect resistance around 25,053 (marked red on the chart). Observe for rejection signals such as bearish candles or reduced buying momentum.
Plan of Action:
For aggressive traders: Initiate a short position with a target of 24,767 , placing a stop-loss above 25,100 on an hourly candle close basis.
For conservative traders: Wait for a pullback toward the consolidation zone ( 24,653 - 24,767 ) for potential long positions, targeting a retest of 25,053 .
Watch out for a decisive breakout above 25,053 , which can trigger further bullish momentum toward 25,335 .
Scenario 2: Flat Opening (Near 24,781)
If Nifty opens near the previous close:
The consolidation zone ( 24,653 - 24,767 ) will act as a critical area.
Plan of Action:
Initiate long positions if Nifty sustains above 24,767 with targets of 25,053 . Place stop-loss below 24,653 .
If Nifty slips below 24,653 , short positions can be considered with a target of 24,542 . Ensure a tight stop-loss above 24,653 .
Pay attention to the price action in the yellow trend zone, as sideways movement could lead to traps.
Scenario 3: Gap-Down Opening (100+ Points Below 24,781)
If Nifty opens near 24,542 or lower:
24,542 is the opening support level (marked green on the chart). Observe for sharp recovery signs like bullish engulfing candles.
Plan of Action:
For bulls: Look for a recovery from 24,542 to target 24,653 with a stop-loss below 24,500 .
If 24,542 breaks decisively, expect bearish momentum toward 24,217 . In this case, initiate shorts with a target of 24,217 and stop-loss above 24,542 .
Risk Management Tips for Options Trading
Avoid taking positions during the first 15-30 minutes of market opening to avoid false moves.
For intraday options trading, use at-the-money or slightly in-the-money options to minimize time decay impact.
Set a fixed risk percentage (e.g., 2-3% of your capital) per trade. Stick to it strictly.
Avoid holding positions beyond your planned targets. Use trailing stop-losses to lock in profits during trending moves.
Summary and Conclusion
The key zones to watch today are:
Support: 24,542 , 24,653 .
Resistance: 25,053 , 25,335 .
Green trend indicates bullish potential, yellow for sideways movement, and red for bearish scenarios.
Adapt to price action at critical levels and prioritize proper risk management.
Disclaimer: I am not a SEBI-registered analyst. All views are for educational purposes only. Traders should conduct their own analysis or consult with their financial advisor before making any trading decisions.
