NIFTY : Trading Plan and Levels for 27-Sep-2024Nifty 50 Index Trading Plan for 27-Sep-2024
Previous Day's Chart Analysis:
On 26th September, the Nifty 50 index showed strong upward momentum, reaching new highs before entering a "Sideways/Profit Booking Zone." Price action around the all-time high (ATH) resistance near 26,385 suggests potential retracement.
Key levels to watch:
- Resistance: ATH at 26,385
- Sideways/Profit Booking Zone: 26,246 to 26,184
- Buyer’s Support: 26,029
These levels will play a crucial role on 27-Sep-2024, and the market’s opening scenario will define the trading strategy.
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Opening Scenarios for 27-Sep-2024:
Gap-Up Opening (+100 points or more):
- If Nifty opens above 26,300:
- Strategy: Monitor resistance near ATH (26,385). Expect a pullback to 26,344-26,246 zone. If price sustains above 26,344, consider long scalping toward 26,385 with a stop-loss at 26,344.
- Short Opportunity: If rejected from 26,385, initiate short near this level with a target at 26,246. Keep a stop-loss above 26,400, and aim for profit booking around 26,246.
Flat Opening:
- If Nifty opens around 26,184:
- Strategy: Look for consolidation within the “Sideways/Profit Booking Zone.” If the price remains below 26,246, initiate a short position targeting 26,145 and 26,090. Stop-loss should be above 26,246.
- Buy Setup: If price breaks above 26,246 with volume, initiate long positions with targets of 26,344 and 26,385.
Gap-Down Opening (-100 points or more):
- If Nifty opens near 26,090:
- Strategy: If the index opens around the support at 26,090, wait for price confirmation. If support holds, initiate long positions targeting 26,145. If 26,090 breaks, avoid longs and look for further downside toward Buyer’s Support at 26,049-26,029.
- Sell Setup: If Nifty breaches 26,049, initiate shorts targeting 25,951 with a stop-loss at 26,090.
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Risk Management Tips for Options Trading:
- Position Sizing: Keep position sizes small when trading near critical levels like ATH or key support zones. Avoid aggressive bets in volatile conditions.
- Hedging: Consider hedging directional positions with options (e.g., buying protective puts).
- Time Decay Awareness: Be mindful of theta decay, particularly for same-week expiries. Prefer deep in-the-money options or writing out-of-the-money options to benefit from premium decay.
- Discipline in Stop-Losses: Maintain strict stop-losses to manage risks associated with sharp market moves.
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Summary and Conclusion:
Nifty 50 faces strong resistance at 26,385 (ATH zone). A rejection here may lead to sideways or bearish movement toward 26,246 or lower levels. However, if price sustains above the Buyer’s Support (26,049-26,029), a bounce back into the profit booking zone is possible. Traders should remain cautious and prepare for market volatility around these key levels.
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Disclaimer:
I am not a SEBI registered analyst. The views presented are based on personal technical analysis and are intended for educational purposes only. Please consult a certified financial advisor before making any investment decisions.
