**Technical Analysis and Trading Strategies for NIFTY on 21-Dec-2023**
On Wednesday, the 20th of December 2023, the market experienced a significant downturn, with prices closing at the day's lowest point. Notably, the breach of our crucial support range of 21304-21268 indicates a shift in the prevailing trend. Consequently, adopting a "sell on rise" trading strategy is advisable until prices manage to reclaim the level of 21350 and establish support.
**Strategies and Levels for 21-Dec-2023**
1. **Scenario 1: Prices Opening Above 21178**
- In this case, resistance is anticipated in the range of 21304-21268, leading to potential sideways movement. Traders may consider short-side positions within this range, setting a stop loss at 21350, targeting levels of 21182, 21150, and 21100.
2. **Scenario 2: Prices Opening Flat and Facing Resistance at 21178**
- If prices open flat and encounter resistance at 21178, a short-side trade becomes viable. Traders can initiate positions with a stop loss at 21200, targeting levels of 21000 and 20945.
3. **Scenario 3: Prices Opening in Deep Red Near 21000**
- In the event of a deep red opening near 21000, support is anticipated around 20945-20935, leading to potential sideways trading. If prices establish support at 20950-20940 during this phase, a bounce-back to levels of 21000-21050 could be observed. Conversely, if this range becomes resistance, prices may experience a further decline to levels of 20866-20800.
This analysis aims to provide a comprehensive outlook for NIFTY on the specified date, offering strategic insights based on different market scenarios. Traders are advised to exercise caution and implement appropriate risk management strategies in line with their individual risk tolerance and trading objectives.
On Wednesday, the 20th of December 2023, the market experienced a significant downturn, with prices closing at the day's lowest point. Notably, the breach of our crucial support range of 21304-21268 indicates a shift in the prevailing trend. Consequently, adopting a "sell on rise" trading strategy is advisable until prices manage to reclaim the level of 21350 and establish support.
**Strategies and Levels for 21-Dec-2023**
1. **Scenario 1: Prices Opening Above 21178**
- In this case, resistance is anticipated in the range of 21304-21268, leading to potential sideways movement. Traders may consider short-side positions within this range, setting a stop loss at 21350, targeting levels of 21182, 21150, and 21100.
2. **Scenario 2: Prices Opening Flat and Facing Resistance at 21178**
- If prices open flat and encounter resistance at 21178, a short-side trade becomes viable. Traders can initiate positions with a stop loss at 21200, targeting levels of 21000 and 20945.
3. **Scenario 3: Prices Opening in Deep Red Near 21000**
- In the event of a deep red opening near 21000, support is anticipated around 20945-20935, leading to potential sideways trading. If prices establish support at 20950-20940 during this phase, a bounce-back to levels of 21000-21050 could be observed. Conversely, if this range becomes resistance, prices may experience a further decline to levels of 20866-20800.
This analysis aims to provide a comprehensive outlook for NIFTY on the specified date, offering strategic insights based on different market scenarios. Traders are advised to exercise caution and implement appropriate risk management strategies in line with their individual risk tolerance and trading objectives.