NIFTY : Trading levels and Plan for 09-Jan-2025Trading Plan for NIFTY - 9-Jan-2025
Intro - Plan vs. Actual for 8-Jan-2025
Yesterday's plan highlighted key levels, with 23,483 - 23518 acting as support and excalty from those level saw a smart recovery. and ended up at flat not. The yellow trend marked the sideways movement, while bearish momentum was evident in the red trend zone.
Today's chart builds upon the prior analysis, with updated levels and a strategy for all opening scenarios.
Trading Scenarios for 9-Jan-2025
Gap-Up Opening (Above 23,860)
If Nifty opens above 23,860 , monitor for rejection near the Profit Booking Zone (24,070) . Look for a bearish hourly candle close in this zone to consider selling opportunities, targeting 23,817 (opening resistance). If strength persists, expect a bullish breakout, targeting 24,150+ .
Action Plan: Wait for rejection candles in the profit booking zone for a potential short. For bullish trades, buy only on sustained breaks above 24,070 .
Risk Management: Use 23,950 as a stop-loss for shorts and 23,860 for longs, based on hourly closes.
Flat Opening (Between 23,611-23,817)
A flat opening around the 23,675 zone requires caution. Watch for price action at 23,817 . A failure to break this resistance could lead to bearish moves, targeting 23,611 and 23,545 . Conversely, a breakout above 23,817 may turn bullish, with upside potential toward 23,860 .
Action Plan: Wait for price confirmation near 23,817 . Use stop-losses 20-30 points above or below breakout/rejection levels.
Risk Management: Trade with minimal risk exposure during the opening 30 minutes to let the trend settle.
Gap-Down Opening (Below 23,545)
In case of a gap-down, observe the 23,545 level for signs of support. Failure to hold may lead Nifty toward the Last Intraday Support Zone (23,432) . Bulls may defend this zone aggressively, offering a potential buying opportunity.
Action Plan: Look for long opportunities only near 23,432 , with targets back toward 23,545-23,611 . If selling persists, avoid aggressive longs below 23,432 .
Risk Management: Use 23,400 as a strict stop-loss for longs in the gap-down scenario.
Tips for Options Trading
Focus on weekly ATM options to minimize premium decay.
Avoid holding positions during volatile periods unless you have a strict exit strategy.
Use spreads to hedge directional trades, especially in uncertain market conditions.
Summary and Conclusion
The market's reaction to the key levels will determine the trend.
Respect the zones: 23,817 as resistance and 23,611 as support.
Patience during the opening 30 minutes can lead to better trade entries.
Yellow indicates sideways, green indicates bullish, and red indicates bearish trends.
Disclaimer : This analysis is for educational purposes only. I am not a SEBI-registered analyst. Please consult your financial advisor before trading.
