NIFTY : Trading Levels and Plan for 23-Oct-2024Nifty Trading Plan for 23rd October 2024
In the previous session, Nifty traded Sharply Downtrend, testing resistance at metioned levels yesterday . The market showed volatility but remained largely Bearish trend. This setup hints at a possible breakout from the current consolidation zone, with key levels to watch for both bulls and bears as the market opens on 23rd October.
Gap-Up Opening (100+ Points):
If Nifty opens above the 24,630 resistance, wait for confirmation of a breakout toward the next key resistance zone at 24,714.
Once the price holds above 24,714, a long position can be considered with an upside target of 24,936, where strong selling pressure might emerge.
Set a stop-loss below 24,630 for long trades to manage risk effectively, especially if Nifty reverses after hitting 24,714.
If the breakout is false, expect a retracement back to 24,630 or even lower toward 24,555.
Flat Opening:
If the market opens flat near the current levels of 24,481, the immediate range to watch is 24,555 to 24,358.
A breakout above 24,555 could trigger a move toward the 24,630 resistance level, where price action should be monitored for continuation or reversal.
On the downside, a breakdown below 24,358 may lead to retesting the 24,298 support level, with potential to go even lower toward 24,164 if selling pressure intensifies.
Place stop-losses below 24,358 for long trades, and above 24,555 for shorts to protect against sudden reversals.
Gap-Down Opening (100+ Points):
If Nifty opens with a gap-down below 24,358, expect increased selling pressure, with the immediate target being the 24,298 support level.
If 24,298 holds as support, a reversal trade could be initiated, but it is crucial to wait for a confirmed bounce before entering long positions.
If the gap-down results in a break below 24,298, watch for further declines toward the 24,164 support, where buyers may try to defend.
Maintain a stop-loss below 24,298 for longs and above 24,358 for short trades to manage risk in case of sharp movements.
Risk Management Tips for Options Trading:
For a gap-up scenario, consider using call spreads to limit risk as Nifty approaches key resistance zones like 24,714 and 24,936.
In case of a gap-down, consider put spreads or long puts to capitalize on increased downside volatility.
Avoid holding naked positions, especially near high-volatility areas. Opt for limited-risk strategies like iron condors or vertical spreads to minimize losses.
Be prepared to exit quickly if Nifty approaches key support or resistance zones, as sudden reversals can cause options premiums to decay rapidly.
Summary & Conclusion:
For 23rd October 2024, the key levels to watch are the resistance at 24,630 and support at 24,358. A gap-up could see a move toward 24,714 and 24,936, while a gap-down may bring Nifty closer to 24,298 and 24,164. Volatility is expected around these levels, and it is crucial to maintain strict stop-losses to minimize risk. In options trading, consider spread strategies to manage volatility and protect against sudden reversals.
Disclaimer: I am not a SEBI registered analyst. This trading plan is based on my personal analysis using technical parameters. Traders are advised to conduct their own research or consult with a financial advisor before making any trading decisions.
