Nifty 50 Trading Strategy for 1st December
Nifty has shown some strength and defended the weak open of more than 90 points down. The open was followed up by a fall below the 23539. This fall below 23539 must have collected the sell side liquidity and then the market rallied up 200 points up from the day low. The price action however was weak as the level of 23650 was not reached in the first half. The price reached 23650 around 2 PM. A strong breakout from here was unlikely as the time to close was not much. If the price covered the distance to 23650 quickly and then would have shown good liquidity sweep pattern and momentum above 23710, the prices could have reached 23850 level. None of the setups from our trading plan happened and hence no trade should have been taken.
Important levels for Nifty 50
Level 1: 24065
Level 2: 23911
Level 3: 23710
Level 4: 23461
Level 5: 23292
Nifty 50 long trading strategy for 1st December.
Scenario #1: The first setup will be if the price opens flat and go near 23539. It then goes above the last selling swing high and crosses 23710. The target can be 23850.
Scenario #2: This is a short covering setup. If the price opens gap up near 23911 and keeps trading above the 9 EMA then we can see a short covering. Target can be 24065.
Nifty 50 short trading strategy for 1st December
Scenario #1: Prices open gap up and then goes up to 23710 and then the prices retrace back to the swing low and then a rejection from 9 EMA. The first target can be 23623 and second target can be 23539.
Scenario #2: Prices opens slightly gap down and then price takes liquidity near the previous day high and then trade below the last swing low and then rejection from 9 EMA. Target can be 23539.
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