NIFTY : Trading Levels and Plan for 21-Nov-2024

Nifty Trading Plan for 21-Nov-2024

Intro:
On 20-Nov-2024, Nifty displayed a volatile session, with the index struggling to sustain above 23,712, the last intraday resistance. A yellow-shaded "No Trade Zone" highlighted indecisive price action between 23,561 and 23,622. The index tested support near 23,296, which aligns with an SMC entry zone and buyer’s support after a liquidity sweep. The green trend depicted potential bullish moves, while the red trend reflected bearish reversals, helping traders prepare for possible outcomes in the upcoming session.

Trading Plan for 21-Nov-2024:

1. Gap Up Opening (100+ points above 23,561):
   
   If Nifty opens above 23,622, monitor for a breakout above 23,712. Sustained movement here could target the Profit Booking Zone (23,815–23,860).
   
   Wait for the first 15–30 minutes to gauge market direction.
   
   Failure to hold above 23,622 might indicate a reversal, pushing the index back into the "No Trade Zone."
   
   
2. Flat Opening (Near 23,561):
   
   A flat opening within the "No Trade Zone" requires patience. Look for a breakout above 23,622 to go long, targeting 23,712.
   
   A breakdown below 23,468 may trigger bearish momentum toward 23,296 or lower.
   
   Avoid entering trades in the yellow-shaded zone to reduce risk from whipsaws.
   
   
3. Gap Down Opening (100+ points below 23,468):
   
   A gap down below 23,441 may result in bearish momentum towards 23,296, where buyers could provide support.
   If 23,296 holds, watch for a pullback toward 23,468 or higher.
   A breakdown below 23,296 could open doors to deeper bearish moves, targeting 22,964. Use tight stop-losses for short positions.
   Risk Management Tips for Options Traders:
   
   Use stop-losses based on the hourly candle close to avoid getting trapped by intraday volatility.
   Avoid trading large positions in the "No Trade Zone"; focus on directional confirmation.
   For gap openings, consider strategies like spreads to manage premiums and volatility.
   Limit risk to 1–2% of your capital per trade to safeguard against sudden market moves.
   Summary and Conclusion:
   
   Key levels to watch are 23,712 on the upside and 23,296 on the downside.
   Trade cautiously within the "No Trade Zone" (23,561 – 23,622).
   Let the price action guide your trades, with trends expected to be influenced by intraday volatility.
   Disclaimer:
   I am not a SEBI-registered analyst. This trading plan is for educational purposes only. Traders are advised to conduct their analysis or consult a financial advisor before making any trading decisions.