NIFTY : Trading Plan and levels for 11-Dec-2024

2 days ago

Trading Plan for Nifty on 11-Dec-2024

Intro for the Previous Day's Chart Pattern:
On 10-Dec-2024, Nifty exhibited a mixed trend with a sharp shift in demand zones. The chart revealed a significant buyer's support near the CHoCH (Change of Character) level, with a consolidation phase observed in the "No Trade Zone." The yellow trend marked sideways action, while green and red trends indicated bullish and bearish movements, respectively. The index also faced resistance in the liquidity zone, signaling profit-booking scenarios.

Trading Plan for 11-Dec-2024:

1. Gap-Up Opening (+100 points or more above 24,620):
   
   A gap-up opening above 24,720 would position the index near the liquidity zone. Traders should:
   
   Wait for the first 15-30 minutes to observe price stability.
   If Nifty sustains above 24,780 (liquidity zone), initiate long trades targeting 24,891 (Resistance/Profit Booking Zone).
   Place a stop loss below 24,652 (Opening Resistance/Support Zone) on a closing basis.
   If prices face rejection near 24,820, wait for a bearish hourly candle to confirm a downside move towards 24,680. Avoid aggressive buying in the resistance zone.
   
   
2. Flat Opening (near 24,620):
   
   A flat opening suggests indecision. Plan of action:
   
   Let the market settle for 15-30 minutes within the "No Trade Zone."
   Breakout above 24,652 can lead to bullish momentum, targeting 24,780 and higher.
   Breakdown below 24,541 could initiate bearish moves targeting 24,374 and 24,338.
   Risk management is crucial here; tight stop losses are essential to avoid unnecessary losses.
   
   
3. Gap-Down Opening (-100 points or more below 24,620):
   
   A gap-down opening near 24,500-24,480 will likely test the buyer's strong support zone around 24,374. Actions to consider:
   
   If Nifty holds above 24,374, initiate long trades for a reversal, targeting 24,541 (Opening Support Zone).
   If the index breaches 24,338, prepare for further downside with targets at 24,280.
   Wait for clear rejection or reversal patterns to confirm your entries. Avoid panic-selling in bearish moves.
   
   

Tips for Options Trading Risk Management:

Trade with defined stop losses and avoid holding positions beyond your risk appetite.
Use "ATM" (At-The-Money) options for quicker returns in trending markets.
For sideways trends, prefer strategies like straddle or strangle.
Avoid over-leveraging, and never risk more than 2-3% of your trading capital on a single trade.


Summary and Conclusion:
Nifty's movement on 11-Dec-2024 will hinge on its ability to sustain critical zones like 24,652 and 24,374. While green trends indicate bullish potential, red trends signal caution for bearish moves. Adhering to risk management principles and waiting for clear price action confirmation will enhance your trade quality and reduce unnecessary losses.

Disclaimer:
I am not a SEBI-registered analyst. All information provided is based on personal research and is for educational purposes only. Traders should perform their own analysis or consult with a financial advisor before making any trading decisions.