Nifty 50 trading strategy for 7th January
Nifty 50 is back in the previous range but the situation is not the same. The price action has gathered buying side liquidity when it broke out of the range. Now there is chance of further fall if the longs start booking losses. There is catalyst in market in the form of HMPV news and Russia Ukraine war updates. There is high chance that market can give a good trend. Let's try to see what are the levels and possible trading strategy for 7th January in Nifty 50.
Important levels for Nifty 50
Level 1: 24792
Level 2: 24302
Level 3: 23911
Level 4: 23539
Level 5: 23260
Nifty 50 long trading strategy for 7th January
Scenario 1:Prices open flat and then goes below 23537 and then recovers quickly above the last selling swing and trend above 9 EMA. Target can be 23800.
Scenario 2: This is short covering scenario where price open above the 23911 level and then shows rejection of this level to the upside. Target can be 24200.
Nifty 50 long trading strategy for 7th January
Scenario 1: Prices open gap up and then goes above 23911 level and then retraces back to the last swing low and then gets rejected downwards by the 9 EMA. Target can be last day close, 23630.
Scenario 2: This is the most bearish scenario where the prices open slight gap down and after taking liquidity from either the last swing high of the previous day close, goes below 23537 and creates a new day low. Target can be 23300.
Commentaires