Nifty 50 Trading Strategy for 27th December

Nifty 50 has been sideways for the whole day on 26th of December. The levels marked by us were not tested today. Prices did go near 23878 but was not able to test it. This is a textbook sideways market and does not have any momentum.

There is no point in throwing money in a sideways market. Traders should wait for better market conditions to take occur. Option sellers will have better day day in such markets. Practice patience here.

Nifty 50 15-minute chart for 26th December

The below chart shows our anticipation for a long trade. The prices open gap up and tested last day close and then consolidated at the same level for the whole day. None of our setup occur for us to trade.

Our trading plan for 26th December

Lets discuss some scenarios for 27th December

Nifty 50 Strategy for long trades on 27th December.

Scenario #1: level of 23650 has provided support for the prices and is now an intermediate liquidity zone. The first long setup will be when prices open slightly gap down and take the liquidity below 23650 and then tests 23869. It is possible that price might go below 23539 and then bounce back. When testing the level 23869 we need to be have some sort of liquidity sweeping pattern before breakout.

Scenario #2: The second scenario would be when prices open slight gap up and test today's close and then try to break the 23865 level. The same kind of liquidity pattern as the previous setup discussed should be visible before breakout.

Nifty 50 long trade setups for 27th December

Nifty 50 Strategy for short trades on 27th December.

Scenario #1: The price opens gap up and goes above 23869 and after a price action, that establishes a support and the breaks down, closes below today's close can go up to 23650.

Scenario #2: The price opens gap down and after testing today's close and then presses on 23650 level multiple times and then gives good liquidity sweeping pattern with a close below 23650, the price might go to 23540.

Nifty 50 short trade setups for 27th December

Remember that prices are going sideways and this inertia will take time to overcome. Please don't overtrade and don't change your strategy. The market conditions will change and your setups will occur.