NIFTY Trading Plan for 12-Dec-2024
Intro: Review of 11-Dec-2024 Plan vs Actual
The trading plan for 11-Dec-2024 outlined key levels such as the Bullish Order Block (24,655–24,607) and the Liquidity Zone (24,820). As predicted, the market respected the "No Trade Zone" initially, followed by consolidation in the Liquidity Zone. The sideways movement highlighted by the yellow trend prevailed, with no significant breakout or breakdown occurring during the session. The Profit Booking Zone at 25,053 remained untouched. This demonstrates the importance of waiting for clear confirmation before executing trades.
Today's updated chart builds upon these levels and provides actionable insights for 12-Dec-2024 based on anticipated price movements.
Opening Scenarios and Plan for 12-Dec-2024
Tips for Risk Management in Options Trading
Use predefined stop losses to cap potential losses. For example, place stops below 24,541 for bullish trades and below 24,300 for reversal trades.
Avoid trading during the first 15 minutes to allow for market direction to emerge.
For option buyers, select ATM or slightly ITM options to reduce the impact of time decay.
Maintain a 1:2 or higher risk-reward ratio to ensure consistent profitability.
Position sizing should align with your risk tolerance to handle volatile price swings.
Summary and Conclusion
The NIFTY index remains in a consolidation phase with critical levels identified for bullish and bearish scenarios.
Liquidity Zone (24,820) and Buyer’s Support (24,374–24,338) are key areas to monitor for actionable trades.
Avoid trading in indecisive zones and wait for clear breakouts or breakdowns.
Effective risk management remains crucial, especially in volatile markets.
Disclaimer: This analysis is for educational purposes only. I am not a SEBI-registered analyst. Please conduct your own research or consult a financial advisor before trading.
Intro: Review of 11-Dec-2024 Plan vs Actual
The trading plan for 11-Dec-2024 outlined key levels such as the Bullish Order Block (24,655–24,607) and the Liquidity Zone (24,820). As predicted, the market respected the "No Trade Zone" initially, followed by consolidation in the Liquidity Zone. The sideways movement highlighted by the yellow trend prevailed, with no significant breakout or breakdown occurring during the session. The Profit Booking Zone at 25,053 remained untouched. This demonstrates the importance of waiting for clear confirmation before executing trades.
Today's updated chart builds upon these levels and provides actionable insights for 12-Dec-2024 based on anticipated price movements.
Opening Scenarios and Plan for 12-Dec-2024
- Gap Up Opening (+100 points or more above 24,652):
If the market opens above 24,750:
Resistance Zone: Immediate resistance remains at 24,820 (Liquidity Zone). Price could either consolidate here or witness selling pressure. Monitor price action for clear breakout signals.
Action Plan: Avoid long entries near the Liquidity Zone unless a breakout above 24,940 is confirmed. Short positions can be initiated on rejection from 24,820, targeting 24,652.
Alternate Scenario: Sustained movement above 24,940 indicates bullish momentum, with targets at the Profit Booking Zone (25,053).
Yellow trend highlights a cautionary approach in consolidation zones. - Flat Opening (Near 24,629–24,652):
If the market opens flat:
No Trade Zone: Expect price to oscillate within 24,629–24,652, indicating indecisiveness. Avoid trading in this range.
Bullish Scenario: A confirmed breakout above 24,652 with a retest offers long opportunities, targeting the Liquidity Zone at 24,820.
Bearish Scenario: A breakdown below 24,541.65 suggests bearish momentum, with potential shorts targeting Buyer’s Strong Support at 24,374–24,338.
Yellow trend signals limited movement; wait for breakouts for better trades. - Gap Down Opening (-100 points or more below 24,541.65):
If the market opens below 24,450:
Support Zone: The critical support lies at 24,374–24,338, aligning with Buyer’s Strong Support near the CHoCH level.
Action Plan: Look for reversal signs near the support zone to initiate long trades with a tight stop loss below 24,300, aiming for 24,541.65.
Alternate Scenario: If this support fails, avoid aggressive longs and wait for stabilization before entering.
Red trend suggests bearish momentum; trade cautiously.
Tips for Risk Management in Options Trading
Use predefined stop losses to cap potential losses. For example, place stops below 24,541 for bullish trades and below 24,300 for reversal trades.
Avoid trading during the first 15 minutes to allow for market direction to emerge.
For option buyers, select ATM or slightly ITM options to reduce the impact of time decay.
Maintain a 1:2 or higher risk-reward ratio to ensure consistent profitability.
Position sizing should align with your risk tolerance to handle volatile price swings.
Summary and Conclusion
The NIFTY index remains in a consolidation phase with critical levels identified for bullish and bearish scenarios.
Liquidity Zone (24,820) and Buyer’s Support (24,374–24,338) are key areas to monitor for actionable trades.
Avoid trading in indecisive zones and wait for clear breakouts or breakdowns.
Effective risk management remains crucial, especially in volatile markets.
Disclaimer: This analysis is for educational purposes only. I am not a SEBI-registered analyst. Please conduct your own research or consult a financial advisor before trading.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.