NIFTY : Trading Plan and Levels for 09-Dec-2024

Nifty Trading Plan for 09-Dec-2024

Previous Day's Chart Pattern:
On 08-Dec-2024, Nifty displayed a range-bound movement within the No Trade Zone (24,674 – 24,780), with intermittent attempts to break out on both sides. Buyers showed interest near the liquidity zone around 24,484, but resistance at 24,780 capped upward momentum. The yellow zone signified consolidation, green highlighted bullish efforts, and red depicted bearish dominance. This creates a balanced yet cautious outlook for the next trading session.

Trading Plan for 09-Dec-2024:

1. Gap-Up Opening (+100 points or more above 24,780):
   
   If Nifty opens above 24,780:
   
   The immediate target will be 24,878. A sustained move above this level may lead to a test of the profit-booking zone at 25,053.
   Enter long positions above 24,780 with a stop loss at 24,730. Watch for rejection patterns near 24,878 for partial profit booking.
   In case of a sharp reversal from 24,878, the index could retrace toward 24,780. Avoid aggressive longs if rejection occurs at higher levels.
   Risk Management Tip: Opt for slightly OTM call options in small quantities. Use trailing stops to secure profits near resistance zones.
   
   
2. Flat Opening (Within the No Trade Zone 24,674 – 24,780):
   
   A flat opening within the No Trade Zone requires patience:
   
   If Nifty breaks above 24,780, initiate longs with targets of 24,878 and 25,053.
   On the downside, a fall below 24,674 can lead to a retest of the first buyer’s support at 24,484. Initiate shorts cautiously with a stop loss above 24,700.
   Risk Management Tip: Avoid overtrading in a sideways zone. Wait for clear breakouts before taking positions. Avoid weekly options in choppy zones.
   
   
3. Gap-Down Opening (-100 points or more below 24,674):
   
   If Nifty opens below 24,674:
   
   First support lies at 24,484. If this zone holds, we may witness a reversal toward 24,674. Look for bullish candles to confirm long entries.
   A break below 24,484 will likely test the liquidity zone at 24,446 or deeper support at 24,374 – 24,338. Enter shorts below 24,484 with a stop loss near 24,500.
   Risk Management Tip: For gap-down scenarios, consider put options with a spread strategy to limit losses. Avoid chasing price movements without confirmation.
   

Summary and Conclusion:

Nifty's key levels to monitor are 24,674 – 24,780 (No Trade Zone), 24,878 (Opening Resistance), and 25,053 (Profit Booking Zone).
The green zones represent bullish trends, yellow highlights consolidation, and red indicates bearish zones.
Focus on executing trades only after confirmation and manage risks with disciplined stop-loss placements.

Disclaimer: This analysis is for educational purposes only. I am not a SEBI-registered analyst. Traders are advised to do their research or consult a financial advisor before trading.