WISH YOU ALL A VERY HAPPY NEW YEAR 2025
Introduction
In the previous trading session, we analyzed Nifty's key support and resistance levels for 1-Jan-2025. The chart provided a clear view of potential price movements under various scenarios. Yellow trends indicated sideways movement, green trends represented bullish behavior, and red trends highlighted bearish trends. Based on the chart for 1-Jan-2025, the actual price action unfolded as expected, staying within the highlighted zones and offering valuable insights for traders.
Trading Plan for 2-Jan-2025
Gap-Up Opening (100+ points)
Flat Opening
Gap-Down Opening (100+ points)
Risk Management Tips for Options Trading
Summary and Conclusion
The trading plan for 2-Jan-2025 revolves around identifying key levels and understanding price behavior under various opening scenarios (Gap Up, Flat, or Gap Down). The No Trade Zone highlights areas to avoid unless clear trends are visible. Follow the highlighted trends: yellow for sideways, green for bullish, and red for bearish movements. By employing proper risk management and adhering to this plan, traders can make informed decisions and navigate market conditions effectively.
Disclaimer: I am not a SEBI-registered analyst. This trading plan is for educational purposes only and should not be construed as financial advice. Always conduct your research and consult a professional financial advisor before making trading decisions.
Introduction
In the previous trading session, we analyzed Nifty's key support and resistance levels for 1-Jan-2025. The chart provided a clear view of potential price movements under various scenarios. Yellow trends indicated sideways movement, green trends represented bullish behavior, and red trends highlighted bearish trends. Based on the chart for 1-Jan-2025, the actual price action unfolded as expected, staying within the highlighted zones and offering valuable insights for traders.
Trading Plan for 2-Jan-2025
Gap-Up Opening (100+ points)
- [] If Nifty opens with a gap-up above 23,837 (No Trade Zone's upper band), observe the first 15-minute candle for confirmation.
[] If the price sustains above 23,837, expect a bullish trend targeting the Resistance Zone at 23,998 and further towards 24,068 for profit booking.
[] Place a stop loss just below 23,837 to manage risk and protect capital.
[] If the price fails to sustain above 23,837, expect a potential pullback towards the No Trade Zone. Monitor closely for any reversals within the zone. - Avoid taking positions inside the No Trade Zone unless a clear breakout or breakdown is visible.
Flat Opening
- [] If Nifty opens flat near 23,758 (current market price), observe the price action for the first 15 minutes.
[] A breakout above 23,837 indicates bullish momentum towards 23,998 and 24,068, following the same plan as the gap-up scenario.
[] A breakdown below 23,699 (No Trade Zone's lower band) may signal a bearish move towards the Opening Support Zone at 23,617–23,640 and further towards 23,537.
[] Place a stop loss just above the breakdown or breakout levels to manage risk. - Wait for a confirmation candle (closing basis) before entering trades to avoid false signals.
Gap-Down Opening (100+ points)
- [] If Nifty opens with a gap-down below 23,699, observe the first 15-minute candle for confirmation.
[] If the price sustains below 23,699, expect a bearish continuation targeting the Opening Support Zone at 23,617–23,640 and further towards the critical support at 23,537 (reversal zone).
[] Place a stop loss above 23,699 to manage risk.
[] If the price fails to sustain below 23,699, anticipate a pullback towards 23,837 and monitor for potential reversals in this region. - Avoid taking impulsive trades at open; let the levels guide your entries and exits.
Risk Management Tips for Options Trading
- [] Always use stop losses to minimize potential losses.
[] Avoid over-leveraging; trade within your capital limits and risk tolerance.
[] Monitor implied volatility and time decay when trading options.
[] Diversify your trades to reduce exposure to single-direction risks. - Stick to your plan and avoid emotional decisions.
Summary and Conclusion
The trading plan for 2-Jan-2025 revolves around identifying key levels and understanding price behavior under various opening scenarios (Gap Up, Flat, or Gap Down). The No Trade Zone highlights areas to avoid unless clear trends are visible. Follow the highlighted trends: yellow for sideways, green for bullish, and red for bearish movements. By employing proper risk management and adhering to this plan, traders can make informed decisions and navigate market conditions effectively.
Disclaimer: I am not a SEBI-registered analyst. This trading plan is for educational purposes only and should not be construed as financial advice. Always conduct your research and consult a professional financial advisor before making trading decisions.
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.