Nifty 50 trading strategy for 8th January
Nifty 50 has closed 90 points up from the last close. The fall on 6th January was attributed to the HMPV outbreak news. The market fell more than 380 points yesterday and recovered 90 points today. The market today was totally sideways. The market did go above the last selling swing as it was necessary for our trade plan to materialize. However, after that it was not able to close below the level 23537. The market went completely sideways after that and no opportunity was available for directional strategies. The good thing about todays market was that it held the positive open throughout the day. It is unlikely to say that HMPV news had the impact yesterday and today it is gone. The market would have behaved bearish today as well if the HMPV outbreak posed a great threat. We have to keep in mind that panic selling provides good entry to buy good stocks. Nifty 50 stocks being the most sought after stocks has greater chance of jumping back.
The levels for Nifty 50 remains the same as none of them were tested.
Important levels for Nifty 50
Level 1: 24792
Level 2: 24302
Level 3: 23911
Level 4: 23539
Level 5: 23260
Nifty 50 long trading strategies for 7th January
Scenario 1: Price open flat and falls below the 23537 level and then price moves quickly above the last swing high and the continue to trade above the 9 EMA. The prices can go up to 23800 and then 23900.
Scenario 2: Price open gap up then tests either today's high or today's close and then gets rejected upwards and the prices closes above 23913. This has to happen before 12 pm. Target can be 24200.
Nifty 50 short trading strategies for 7th January
Scenario 1: Price open gap up and then move up till 23913 and then falls below the last swing low and then gets rejected downwards. The target can be till 23537.
Scenario 2: The market open flat or slight down and then first goes up till today's close and then gets rejected downwards below 23537. Target should be till 23300.
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