Nifty 50 Trading Strategy for 6th January
Nifty has closed 180 points down from its previous session. Taking into account the last day rally of 440+ points, this seems like a profit booking scenario. The prices after opening flat, fell around 180 points and then remained volatile for the whole day. There was no follow up selling after the initial fall. The fall did not even reach the last buying swing low. This indicates that the buyers are still strong and we might see some follow up buying in coming days. For me, there was no proper setup today.
The important levels are unchanged as the market is trading between our levels.
Level 1: 24792
Level 2: 24302
Level 3: 23911
Level 4: 23539
Level 5: 23260
Nifty 50 long trading strategy for 6th January
Scenario #1: Price open flat or slight gap down and then go below 23911 and then it bounces back to the swing high and then gives rejection from the 9 EMA. The target can be previous session high near 24200.
Scenario #2: The prices open gap up and test last session close and gives strong rejection. This should take the prices above the last swing high. Then if the prices show rejection from 9 EMA then there is a chance of prices testing previous session high or 24300 level.
Nifty 50 short trading strategy for 6th January
Scenario #1: Price open slight gap up and then cross last selling swing, 24150. The price can go to previous session high and then fall below the last buying swing and then gets rejected from 9 EMA to the down side. The target can be previous session low or close.
Scenario #2: The prices open gap up then go above 24302 and then comes back below the last swing low and then gets rejected downwards by 9 EMA. The target can be 24100 to 23990.
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