Overview:
After the special trading session on Saturday, NIFTY reached the upside target of 22518, which is the lower band of our profit booking range (22518 - 22586). Due to limited market participation, the price change was insignificant. Here’s what to expect for the trading session on Monday, 20-May-2024, considering different opening scenarios and potential price movements at key levels.
Gap Up Opening Above 22500:
Sustaining Above 22520: If prices hold above 22520, they could target the range of 22586, the upper band of the profit booking zone. Here, a short trade can be considered with a target range of 22450 - 22437, setting a stop loss (SL) at 22610.
Sustaining Above 22610: Consider buying if prices stay above 22610, with an SL below 22500. If prices rise above 22620, they may move towards 22711 and 22914 in the near future.
Flat Opening:
Rejection at 22517-22520: If prices open flat and face rejection near 22517-22520, a drop toward 22437 is possible.
Sustaining Above 22520: If prices hold above 22520, they could move towards 22586 – 22610. Consider buying above 22610 and planning a short trade below 22437, targeting 22711 – 22750 for the upside and 22331 – 22305 for the downside.
Gap Down Opening Below 22430:
Sustaining Below 22460: Look for a short trade if prices remain below 22460, targeting 22331 – 22305 with an SL at 22510.
Regaining 22470: If prices quickly regain 22470 and hold above this level, consider a buy trade with an SL of 22430, targeting 22518 – 22586.
Conclusion:
For NIFTY, the trading strategy for 20-May-2024 involves close monitoring of specific key levels and adjusting trades based on whether prices sustain above or below these levels. Gap openings, flat openings, and gap-down scenarios each have distinct strategies to maximize potential gains and minimize risks. Traders should be vigilant and ready to act on these predefined plans to navigate market movements effectively.
Disclaimer:
This analysis is based on current market conditions and is intended for informational purposes only. Trading in financial markets involves risk, and individuals should conduct their own research or consult with a financial advisor before making any trading decisions.