Here's your detailed trading plan for NIFTY on 29-Jan-2025, covering all possible opening scenarios with actionable insights.
📈 Scenario 1: Gap-Up Opening (200+ points above 23,088)
If Nifty opens with a gap-up, watch for resistance levels around 23,231-23,288:
📈 Scenario 1: Gap-Up Opening (200+ points above 23,088)
If Nifty opens with a gap-up, watch for resistance levels around 23,231-23,288:
🔹 Resistance Zone: 23,231-23,288 – Wait for confirmation before initiating a put option trade, targeting 23,088-23,024 if the level holds.
🔹 If 23,288 breaks with volume, expect a rally towards 23,350+. Look for call option trades with a strict stop-loss below 23,231.
🔹 Avoid overtrading near 23,088-23,231 without clear signals.
💡 Pro Tip: Wait for a 15-minute candle close above/below key levels for confirmation.
📉 Scenario 2: Flat Opening (Near 22,976-23,024)
A flat opening brings the market closer to the No Trade Zone (22,963-23,024). Breakout confirmation is crucial:
🔹 If Nifty sustains above 23,024, it may test 23,088 and later 23,231 – Ideal for call option trades.
🔹 If Nifty breaks 22,963, expect weakness towards 22,862-22,829. Look for put option trades with a stop-loss above 23,024.
💡 Pro Tip: A breakout from the No Trade Zone often leads to strong directional moves. Let the market decide the trend.
⬇️ Scenario 3: Gap-Down Opening (200+ points below 22,963)
A bearish gap-down will test buyer strength at crucial support zones:
🔹 Support Zone: 22,862-22,829 – Look for reversal signs. If the price holds, call options targeting 22,963-23,024 can be considered.
🔹 If 22,829 breaks decisively, expect further downside towards 22,637. Plan for put option trades, keeping SL above 22,862.
🔹 Be cautious near 22,637 as it might act as a reversal zone.
💡 Pro Tip: After a gap-down, monitor institutional activity before taking a trade. Avoid bottom fishing too early.
🛡️ Risk Management Tips for Options Trading
🔹 Use a fixed percentage of capital per trade (1-2%) to manage risk effectively.
🔹 Avoid chasing trades—let the market confirm levels.
🔹 Always use stop-loss and avoid averaging losing positions.
🔹 Prefer at-the-money (ATM) or slightly out-of-the-money (OTM) options for liquidity.
📊 Summary and Conclusion
🔹 Key Resistance Zones: 23,088, 23,231, 23,288
🔹 Key Support Zones: 22,963, 22,862, 22,829, 22,637
📌 Follow the plan, avoid emotional trading, and stick to defined levels. The market rewards discipline and patience!
⚠️ Disclaimer: I am not a SEBI-registered analyst. This plan is for educational purposes only. Trade responsibly. 😊
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.