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Intro: Review of Previous Plan (30-Dec-2024)
Check plan V/s Actual performance for 30-Dec-2024 here : https://www.tradingview.com/chart/NIFTY/35Pny2Tz-NIFTY-Trading-levels-and-Plan-for-30-Dec-2024/.
b]Trading Plan for Nifty - 31-Dec-2024
Key Color Codes in the Plan:
Yellow Trend: Sideways
Green Trend: Bullish
Red Trend: Bearish
Trading Plan for 31-Dec-2024:
Risk Management Tips for Options Trading:
Focus on in-the-money options to reduce the impact of time decay in sideways markets.
Use hedged strategies like iron condors to capitalize on low volatility within the sideways trend.
Always calculate your maximum loss and ensure it does not exceed 2% of your trading capital.
Avoid holding positions overnight without clear directional bias in the market.
Summary and Conclusion:
The key levels for tomorrow’s trading session are 23,768 on the upside and 23,427 on the downside.
Patience is critical within the Yellow sideways zone; wait for clear breakouts or breakdowns.
Use defined stop-loss levels to minimize risk and maximize reward.
Disclaimer:
I am not a SEBI-registered analyst. This plan is for educational purposes only. Please conduct your analysis or consult with a financial advisor before making any trading decisions.
Intro: Review of Previous Plan (30-Dec-2024)
Check plan V/s Actual performance for 30-Dec-2024 here : https://www.tradingview.com/chart/NIFTY/35Pny2Tz-NIFTY-Trading-levels-and-Plan-for-30-Dec-2024/.
b]Trading Plan for Nifty - 31-Dec-2024
Key Color Codes in the Plan:
Yellow Trend: Sideways
Green Trend: Bullish
Red Trend: Bearish
Trading Plan for 31-Dec-2024:
- Scenario 1: Gap-Up Opening (100+ points above 23,768)
If Nifty opens above 23,768, the price is expected to move towards the Last Resistance for Intraday (23,866).
Observe price action near 23,866; a breakout with sustained volume can trigger a long position targeting the Resistance for sideways at 24,010–24,058.
If rejection occurs at 23,866, look for bearish patterns (e.g., evening star or bearish engulfing). Initiate a short trade with a target of 23,737.
Place a stop-loss 20 points beyond the breakout/rejection level to manage risk. - Scenario 2: Flat Opening (23,636–23,768)
A flat opening indicates indecision, and the market is likely to remain within the Yellow sideways zone.
Avoid trading aggressively in the Opening Resistance/Support zone (23,737–23,768). Wait for a breakout above 23,768 to initiate long positions, targeting 23,866.
On the downside, a breakdown below 23,636 could lead to bearish momentum towards the Buyer’s Support zone at 23,427. Initiate short trades if the price sustains below 23,636, with a stop-loss above 23,700. - Scenario 3: Gap-Down Opening (100+ points below 23,604)
A gap-down below 23,604 could lead to bearish pressure, testing the Buyer’s Support zone at 23,427.
Observe reversal patterns (e.g., hammer or bullish engulfing) at 23,427. If confirmed, initiate long trades targeting 23,604.
If the support fails, further bearish action could drive the price towards 23,320. Enter short trades on confirmation of the breakdown, with a stop-loss above 23,500.
Risk Management Tips for Options Trading:
Focus on in-the-money options to reduce the impact of time decay in sideways markets.
Use hedged strategies like iron condors to capitalize on low volatility within the sideways trend.
Always calculate your maximum loss and ensure it does not exceed 2% of your trading capital.
Avoid holding positions overnight without clear directional bias in the market.
Summary and Conclusion:
The key levels for tomorrow’s trading session are 23,768 on the upside and 23,427 on the downside.
Patience is critical within the Yellow sideways zone; wait for clear breakouts or breakdowns.
Use defined stop-loss levels to minimize risk and maximize reward.
Disclaimer:
I am not a SEBI-registered analyst. This plan is for educational purposes only. Please conduct your analysis or consult with a financial advisor before making any 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.