Market Outlook: Following a volatile "dot-to-dot" session on Thursday, NIFTY may experience a pause in activity on Friday, May 17th. This plan outlines potential trading strategies based on various opening scenarios.
Trading Strategies:
Gap Up Opening:
Entry: If NIFTY opens above 22450 and finds support at 22435, consider a long trade.
Target 1: 22517 (potential resistance zone with sideways movement likely).
Target 2: If prices surge past 22530, an upward trend towards 22600-22608 is possible.
Contingency: If the opening surge fizzles and prices decline, look for support at 22331-22308. Consider entering a buy trade at these levels.
Flat Opening:
Entry: Initiate a long trade with support at 22334-22308.
Target: Aim for the initial range of 22435-22517.
Short Recommendation: No short positions are recommended for this scenario.
Gap Down Opening:
Entry: If NIFTY opens below 22300, identify a buying opportunity above 22308-22310.
Stop-Loss (SL): Place a stop-loss order at 22260 to manage risk.
Target: Look for price recovery towards 22400-22435-22517.
Short Caution: Avoid shorting unless prices definitively break below 22050 and sustain that level.
Conclusion:
This plan prioritizes buying opportunities across different opening scenarios. Short positions are generally discouraged unless specific lower support levels are breached. Remember, this is a guide, and market conditions can change rapidly. Adapt your strategy based on your risk tolerance and real-time market analysis.
Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions.