NIFTY : Levels for 12-Sep-2024

Sep 11

Trading Plan for 12th September 2024:
We will consider all scenarios for market opening with a gap of 100+ points. Follow the appropriate trading plan based on how the market opens:

1. Gap Up Opening (+100 points or more):
   If Nifty opens above 25,050, it is crucial to assess whether the market can hold above the Resistance at CHoCH Zone (around 25,150).
   - Wait for the first 15-minute candle to close above 25,150 for confirmation.
   - Enter a long position if the market sustains above this level, targeting the profit booking zone near 25,300.
   - Keep a stop loss at 25,050 on a closing basis for risk management.
   
   If Nifty rejects the resistance zone and begins to reverse, look for shorting opportunities with a target towards 24,950-24,900 range.
   
   
2. Flat Opening (within 100 points):
   If Nifty opens near 24,950-24,900, avoid taking positions in the "No Trade Zone" (24,900-24,833).
   - Wait for a breakout above 25,050 or breakdown below 24,833 to initiate trades.
   - For a breakout above 25,050, target 25,150 with a stop loss at 24,950.
   - For a breakdown below 24,833, target the support zone at 24,706, with a stop loss above 24,850.
   
   
3. Gap Down Opening (-100 points or more):
   If Nifty opens below 24,833, closely monitor price action around the "Support Zone at Retracement (BoS Zone)" between 24,706 and 24,652.
   - If this support zone holds, initiate a long position with a target towards 24,833 and a stop loss at 24,650.
   - If Nifty breaks below 24,650, expect further downside towards the "Best Buy Zone" around 24,568-24,512. Enter long positions only if the price action shows signs of reversal near the best buy zone.
   
   

Risk Management Tips for Options Trading:
- Trade with proper position sizing: avoid risking more than 1-2% of your capital on a single trade.
- For buying options, consider out-of-the-money (OTM) options only if you expect a large move; otherwise, trade at-the-money (ATM) options for better risk management.
- Use a trailing stop loss to protect profits, especially when trading options with high volatility.
- Keep an eye on time decay, especially during sideways movements in the "No Trade Zone."

Summary and Conclusion:
For 12th September 2024, Nifty's potential movement depends on how it reacts around the key levels mentioned above. A gap up may face resistance around the CHoCH zone, while a flat or gap-down opening could test the lower support levels. Follow the price action closely before entering trades, and adhere to strict risk management rules to navigate the intraday volatility.

Disclaimer:
I am not a SEBI registered analyst. The views expressed are my own based on technical analysis and personal experience. Traders should conduct their own research or consult with a financial advisor before making any trading decisions.