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Nifty 50 Index
Long

NIFTY : Trading Plan and levels for 16-Dec-2024

By LiveTradingBox
Trading 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

  1. 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.
  2. 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.
  3. 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
  1. []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.

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