NIFTY : Trading Levels and Plan for 10-Dec-2024Trading Plan for Nifty 50 – 10-Dec-2024
Intro:
On the previous trading day, Nifty witnessed a mix of consolidation and momentum shifts. The Liquidity Zone around 24,767 acted as a crucial resistance level, while support near 24,541.65 helped stabilize the index. The chart shows a No Trade Zone between 24,626.60 and 24,652.35, indicating indecisiveness. A clear trend above or below this range will dictate the next move. Yellow signifies sideways movement, green shows bullish potential, and red highlights bearish breakdowns.
Opening Scenarios:
Gap-Up Opening (+100 Points):
If Nifty opens near 24,767 or higher, it will test the Opening Resistance . This level aligns with the Liquidity Zone observed previously.
Action Plan:
A breakout above 24,767 could push the index toward the Profit Booking Zone at 25,053. Enter long positions only if the first 15-minute candle closes above 24,767, with a stop loss at 24,652.35.
If rejection occurs at 24,767, expect a pullback toward 24,652.35. Short positions can be considered below 24,767, targeting the No Trade Zone.
Risk Management Tip: Avoid aggressive positions at key resistance zones. Use limited-risk strategies like debit spreads to manage exposure.
Flat Opening:
If Nifty opens near 24,652.35, it enters the No Trade Zone . This is a neutral region, and waiting for a clear breakout or breakdown is recommended.
Action Plan:
A breakout above 24,652.35 can lead to a bullish move toward 24,767. Initiate long positions with tight stop losses at 24,541.65.
A breakdown below 24,626.60 could trigger bearish momentum, targeting 24,541.65. Consider short trades in this scenario, with stop losses at 24,652.35.
Risk Management Tip: Avoid overtrading in consolidation zones. Use trailing stop losses to secure profits during volatile phases.
Gap-Down Opening (-100 Points or More):
If Nifty opens near 24,541.65 or lower, it will test the Opening Support or even the Buyer's Strong Support near 24,338.
Action Plan:
Watch for a bullish reversal near 24,338. If the price sustains above this level, initiate long positions targeting 24,541.65. Use 24,300 as a stop loss.
A breakdown below 24,338 could lead to a bearish continuation toward 24,200. Short positions can be initiated in such cases, with stop losses above 24,338.
Risk Management Tip: In gap-down scenarios, prioritize hedged strategies like iron condors to mitigate large swings.
Summary & Conclusion:
Resistance Levels: 24,767 , 25,053
Support Levels: 24,541.65 , 24,338 , 24,200
A breakout or breakdown from the No Trade Zone will set the directional bias for the day. Traders should remain cautious and avoid emotional trading.
Disclaimer:
This analysis is for educational purposes only. I am not a SEBI-registered analyst. Please consult your financial advisor or conduct independent research before trading.
