Nifty 50 trade setups for 23rd December
Nifty 50 bear trend has continued on 20th December as well. Nifty is falling as if there is no tomorrow. Last data shows that Nifty has lost more than 350 points on Friday. I guess the effect of US fed rate cut will keep Nifty "not bullish" for coming weeks.
Anyways, the anticipation of Nifty was spot on for today. We were able to capture 274 points in index basis our strategy. In the first half, the market appeared sideways and I was not interested in making short position but then the bears came in and we were able to see a good rally to the downside.
The exact setup was discussed yesterday. The trade could have easily given 270+ points and that too very quickly.
On a larger timeframe, Nifty is super bearish and it should take some time for it to get back up. The nearest support is 23282. I think the price should take some time at this level. The index might bounce from this level but immediate recovery looks unlikely.
Let's see what can be the possibilities for 23rd December.
Nifty 50 long trade setups for 23rd December.
Scenario #1: The most probable long trade setup would be when prices open slight gap down and after testing today's close might fall till 23282. We can expect a long setup if there is a bounce from this level.
Scenario #2: This setup is unlikely. The market opens gap up near 23878. The market falls but recovers above 23878. The price sustain above this level till the first half and then if we see the price creating new day highs, then there is good chance of short squeeze. Remember, market is negative and sellers might be trying to enter but its up to buyers to show strength at 23878.
Nifty 50 short trade setups for 23rd December.
Scenario #1: The prices open flat or slight gap up. The price might go up a little till 23878 and then it might get rejected from that level. In case the the price cross 23878 and start sustaining above it, we might see some short squeeze.
Scenario #2: The price might open gap down or flat and then move up and test today's close. If that level gets rejected and a day low is created then the price might go till 23282.
The market after taking a pause yesterday, the fall has resumed and the price might take support on 23828. We need to understand that we have to keep a neutral outlook as the price might bounce any day. So don't be totally bearish and judge the price action as it unveils.
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