Nifty 50 Trading Setups for 20th December
The 300 points gap down opening in the morning was totally unexpected unless you follow the US market. Anyways the updates come after the Indian markets are closed. So the plan we had for Nifty did not work as the Index was totally sideways. The market opened gap down and was sideways for the rest of the days. It was unable to move in any direction. The level of 22881 acted as support and was able to held the index above it for the whole day. We wanted the price to take some liquidity and move in any direction. However, the market was not taking any liquidity and then simply closed sideways. In the stocks as well, the targets were not reached.
After having the updates from the US the market was able to hold the weak closing. Does this show the resilience of the market or this is just a pause before the actual move.
Lets try to see what are the setups that might happen tomorrow.
Nifty 50 short trading setups
Scenario #1: The first case will be if the price open slightly gap up and then goes to 24300 and then starts to fall. In first target will be 24900. If the bearish sentiment is so strong then it might show rejection of the level 24900 and can fall further.
Scenario #2: If today was a pause day for Nifty and the sentiment is very bearish then the price might open flat or slightly gap down. It might go up and test the high of today -24000 and then might take support from 24900 and break it. If this setup occurs then the targets will be high.
Nifty 50 long trading setups
Scenario #1:The only genuine long setup I can imagine right now is when Nifty tries to prevent a fall then recover. In this scenario, the price might open gap down or flat. The price then falls below 23881 and then tries to recover above the level. The targets will be 24000 max as the gap might act as resistance.
Scenario #2:The most unexpected setup for tomorrow will be if the prices open a gap up and tries to sustain above 24300. We can see a short squeeze if the prices starts to sustain above 24300 and the price takes support from 9 EMA.
After stating the above scenarios, I would suggest that the overall market might go sideways tomorrow as well. Bullish setups look more unlikely tomorrow but anything may happen tomorrow so be ready.
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