Nifty 50 Trading Strategy for 31st December
What an amazing day folks! Nifty finally giving us the exact setup and our patience has been rewarded. Our trading plan was spot on and we got the exact trade we wanted. The target was hit without any problem. The market opened flat and after confusing a little went up above 23869 and collected the buy side liquidity and then immediately tested the buying swing low. The price action was so beautiful that the stop loss was clear and the target of 23650 was reached. For the last few days market was moving sideways and was testing our conviction in the setup.
Nifty 50 levels have changed a little after the price action in past few days.
Level 1= 24065
Level 2= 23911
Intermediate Level 3=23650
Level 4=23539
Level 5=23292
Let's try to see some of the setups for 31st December.
Nifty 50 long trading strategy for 31st December
Scenario #1: Price opens gap up, preferably above 23911 and trades above 23911 till the second half. The prices can also show a rapid fall after gap up open and then a quick recovery above 23911. The price if shows rejection from 9 EMA and 23911 level then this can indicate a short covering move in Nifty 50. The targets can be till 24065.
Scenario #2: Price opens flat or slight gap down and then takes the liquidity below 23539 and then immediately recovers the last selling swing and trades near 23650. In this scenario if we see good liquidity sweep pattern then there can be up move to 23800 and then 23912.
Nifty 50 short trading strategy for 30th December.
Scenario #1: The price opens gap up and then take buying liquidity above 23911 and then retrace back to the buying swing low. If the prices starts trading below 23850 and starts rejecting 9 EMA then the prices may fall to 23650.
Scenario #2: The price opens flat and then after taking the liquidity above the last selling swing high at 23700 falls to 23650 and continues to trade below 9 EMA then the prices might fall till 23539.
Scenario #3: The most bearish scenario would be when prices open gap down and after taking liquidity above 23650 or 23700 retrace back to 23539. The prices keep pressing at 23539 and the breakdown happen before 12:30 PM then the prices may fall to 23300.
I want to reiterate that the price action is still sideways and tomorrow being last day of the year, not much can be expected. Please take trades prudently and don't overtrade in case there is a sideways market tomorrow.
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