NIFTY : Trading levels and Plan for 03-Feb-2025

NIFTY Trading Plan for 03-Feb-2025

Key Levels to Watch:Resistance Zones:🔴 Intraday Resistance Zone: 23,622 - 23,672🔴 Profit Booking / Sideways Zone: 23,822

Support Zones:🟠 Opening Support / Resistance Zone: 23,475 - 23,565🟢 Opening Support at Retracement: 23,367🟢 Last Intraday Support (Must Try Zone): 23,229 - 23,259🟢 GAP-UP Opening (100+ Points)(Typically above 23,600 region)

➡️ If NIFTY opens above 23,565 and sustains, we need to observe price action at 23,622 - 23,672 (intraday resistance zone).

1. Bullish Scenario: If price consolidates above 23,672 and breaks out with volume, expect a rally towards 23,822 (profit booking zone). 📈📌 Entry: Above 23,672🎯 Target: 23,750 - 23,822❌ Stop Loss: Below 23,600
   
   
2. Bearish Rejection: If price rejects from 23,672 and fails to sustain, expect a pullback towards 23,500 - 23,475.📌 Entry: Below 23,620 after confirmation🎯 Target: 23,500 - 23,475❌ Stop Loss: Above 23,680
   
   📝 Educational Tip: In strong gap-up scenarios, avoid chasing the market immediately. Let the price consolidate near key resistance levels before taking a trade.
   
   ↔️ Sideways Possibility: If NIFTY stays between 23,565 - 23,672, it may remain range-bound. Wait for a breakout.
   
   ⚖️ FLAT Opening (Near 23,470 - 23,500)➡️ A flat opening would indicate market indecision and a need for further confirmation.
   
   
   1. Bullish Bias: If price takes support at 23,475 - 23,500 and starts moving up, it can retest 23,622, then 23,672.📌 Entry: Above 23,500 after bullish confirmation🎯 Target: 23,622 - 23,672❌ Stop Loss: Below 23,450
      
      
   2. Bearish Breakdown: If NIFTY breaks below 23,475, expect a move towards 23,367 or even 23,259 (last intraday support).📌 Entry: Below 23,475🎯 Target: 23,367 - 23,259❌ Stop Loss: Above 23,525
      
      📝 Educational Tip: Flat openings require patience. Let the market establish a clear direction before entering. Avoid overtrading in a choppy market.
      
      🔴 GAP-DOWN Opening (100+ Points)(Typically below 23,375)
      
      ➡️ If NIFTY opens below 23,367, it indicates weakness and possible downside towards 23,259 - 23,229.
      
      
      1. Bearish Continuation: If price sustains below 23,367, expect selling pressure towards 23,259 and 23,229.📌 Entry: Below 23,367🎯 Target: 23,259 - 23,229❌ Stop Loss: Above 23,400
         
         
      2. Bounce Back Scenario: If NIFTY takes support at 23,259 and shows strong reversal, we may see a move back towards 23,367 or even 23,475.📌 Entry: Above 23,275 after confirmation🎯 Target: 23,367 - 23,475❌ Stop Loss: Below 23,220
         
         📝 Educational Tip: In gap-down scenarios, watch for institutional buying or aggressive selling. Avoid counter-trend trades without confirmation.
         
         📌 Risk Management Tips for Options Traders✅ Trade with Defined Risk: Always set a stop loss before entering a trade.✅ Avoid Overleveraging: Keep position sizes within your risk tolerance.✅ Watch for Volatility: Sudden spikes in IV (Implied Volatility) can impact options pricing.✅ Exit at Key Levels: If a trade reaches resistance/support, book partial profits.✅ Use Spreads for Safety: Instead of naked options, consider spreads to minimize risk.
         
         📊 Summary & ConclusionGap-Up: Watch for resistance at 23,672; breakout targets 23,822.Flat Opening: Key support at 23,475; break above 23,500 can lead to bullish movement.Gap-Down: Below 23,367, expect 23,259 - 23,229; bounce possible from support.
         
         🛑 Disclaimer: I am not a SEBI-registered analyst. This analysis is for educational purposes only. Trade at your own risk.
         
         🚀 Happy Trading & Stay Disciplined! 💰