Nifty Trading Plan for 6-Jan-2025
Introduction
The chart shared yesterday highlighted key zones and potential movements. The Opening Resistance Zone of 24,312 acted as a strong supply area, while the Support Zone between 23,970-24,016 was well respected. Actual price movement closely aligned with the predicted Yellow (Sideways) and Green (Bullish) trends, allowing traders to capitalize on the directional moves.
Today’s chart brings us new levels and strategies for varying opening scenarios. Let's dive into the details for 6-Jan-2025!
Trading Plan for 6-Jan-2025
Introduction
The chart shared yesterday highlighted key zones and potential movements. The Opening Resistance Zone of 24,312 acted as a strong supply area, while the Support Zone between 23,970-24,016 was well respected. Actual price movement closely aligned with the predicted Yellow (Sideways) and Green (Bullish) trends, allowing traders to capitalize on the directional moves.
Today’s chart brings us new levels and strategies for varying opening scenarios. Let's dive into the details for 6-Jan-2025!
Trading Plan for 6-Jan-2025
- Gap-Up Opening (100+ Points Above 24,016):
If Nifty opens with a significant gap-up:
Immediate resistance lies at 24,170-24,196. Wait for price action near this level.
Bullish Scenario: If prices sustain above 24,196 for 15 minutes, enter a long position with targets at 24,312 and 24,550. Use a stop-loss below 24,170.
Sideways Possibility: If price struggles near 24,170, expect a sideways trend, as shown in Yellow. Avoid overtrading here. - Flat Opening (Near 23,990):
If Nifty opens flat:
The key Opening Support Zone is at 23,973-23,902. This area serves as a no-trade zone unless there is a clear breakout or breakdown.
Bullish Scenario: Look for sustained buying above 24,016, targeting 24,170 initially and then 24,312.
Bearish Scenario: If prices fall below 23,902, expect a move toward the next support zone at 23,814. Use a tight stop-loss above 23,902. - Gap-Down Opening (100+ Points Below 23,970):
If Nifty opens with a gap-down:
Immediate focus should be on the First Support Zone at 23,814.
Bearish Scenario: If prices fail to hold 23,814, expect a sharp move toward 23,623 (Last Intraday Support).
Bullish Reversal Opportunity: If prices recover quickly and reclaim 23,970, consider going long for a target of 24,016. Stop-loss below 23,814.
Avoid aggressive shorting unless price action confirms weakness below 23,814.
Risk Management Tips for Options Traders:
Use smaller lot sizes to manage risk during volatile openings.
Focus on ATM (At the Money) options to reduce premium decay in uncertain conditions.
Avoid trading during the first 15 minutes unless clear trend confirmation is seen.
Always maintain a stop-loss and adhere to it.
Summary and Conclusion:
Today’s plan focuses on the key zones of resistance and support. The Opening Resistance Zone at 24,170-24,196 will be crucial for bullish continuation, while the Support Zones at 23,814 and 23,623 must be monitored for bearish breakdowns. Follow the Yellow, Green, and Red trends for guidance, and remember to prioritize risk management over aggressive trades.
Disclaimer: I am not a SEBI-registered analyst. This trading plan is for educational purposes only. Traders are advised to conduct their analysis or consult a financial advisor before executing any trades.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.