In analyzing the chart for Nifty 50, we see that the index appears to be on a recovery trend from a dip, suggesting potential for a reversal upwards. The recent low could be seen around the 21975 level, providing a strategic point for setting a stop loss if considering a long position.
Given your trading strategy and the current chart formation, you could consider taking a long position if there's a clear upward trend confirmation, such as a bullish pattern or breaking past a significant resistance. A stop loss at 21980 on a closing basis, as you suggested, seems prudent to limit potential downside risk.
As always, keep monitoring the index movement closely for any signs of trend reversal or unexpected volatility that could affect your position.
Given your trading strategy and the current chart formation, you could consider taking a long position if there's a clear upward trend confirmation, such as a bullish pattern or breaking past a significant resistance. A stop loss at 21980 on a closing basis, as you suggested, seems prudent to limit potential downside risk.
As always, keep monitoring the index movement closely for any signs of trend reversal or unexpected volatility that could affect your position.