After a significant correction, NIFTY experienced a sharp decline, breaching its intraday support and closing near the day's lows. For the trading day on May 10th, the following scenarios can be anticipated:
Scenario 1:
If NIFTY opens above 22050 and maintains above 22070 within the first hour, a relief rally may occur.
Failure to hold above 22070, with trading occurring between 22035-21968, could signal muted price movements post a sharp correction.
Scenario 2:
Should prices drop below 21937, a further correction towards 21813-21753 might be observed, followed by a potential correction upwards towards 21950 – 22000.
Buying Levels:
From the bottom: 21813 – 21753, with targets at 21950 - 22000 and a stop loss at 21720.
Sustaining above 22050, targeting 22216 – 22255 with a stop loss at 22000.
Short Trade Levels:
From higher levels: 22220, with a stop loss at 22260 and targets at 22035 - 21975.
Dropping below 21937, targeting 21813-21750 with a stop loss at 22980.
Extended Levels:
Downside: 21649 – 21500
Upside: Above 22260, targeting 22423-22487.
Conclusion:
The trading plan suggests potential scenarios and levels for buying and shorting NIFTY on May 10th. However, market conditions can change rapidly, and traders should exercise caution and adjust their strategies accordingly.
Disclaimer:
Trading in financial markets involves risks and may not be suitable for all investors. The provided trading plan is for informational purposes only and should not be construed as financial advice. Traders are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions.