Nifty 50 trading strategy for 10th January
Nifty 50 closed 160 points down on 8th of January. The level of 23537 has been able to support Nifty for the third time this week. Nifty is forming descending triangle with 23537 as the support. If the pattern gives a breakdown the index can lose 200 to 300 points in the next week.
The prices opened flat and started to fall till the 23537. The market reached this level by 10:45 AM but after that the prices remained sideways and breakdown failed. None of our trading plan setups occurred in the market and hence today was another no trading day. Prices never took the buyside liquidity and hence probability of breakdown was very less. Many of the traders must have gotten trapped in anticipation of a breakdown. Sticking to the principle and avoiding greed is necessary for trading. The sellers were trapped around 23537 in the last two days. We saved ourself as we stuck to our trading plan. We have to discipline our mind to let go off random setups that keep happening in the market. The index is clearly bearish and it seems as if the market is waiting for something to happen.
Important levels for Nifty 50
Level 1: 24792
Level 2: 24302
Level 3: 23911
Level 4: 23539
Level 5: 23260
Nifty 50 trading strategy for 10th January.
Long Scenarios 1: Price open flat or slightly gap up and then first fall below previous day close and then recovers above the last selling swing and then trade above 9 EMA. The target can be till 23760.
Long Scenarios 2: Price open gap up and then fall test the last day range and then recovers above the last selling swing and then close above 23760. Target can be 23911.
Short scenario 1: Price open either flat or gap down. Prices first go up and may collect buying side liquidity from the last selling swing high and then test the day low and closes below 23537. The target can be 23300.
Short scenario 2: Price open gap up and go up and test 23760 level. if the prices gets rejected downwards below the last buying swing and the trade below 9 EMA we can expect the prices to go till 23537.
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