Should NIFTY exhibit a gap-up opening above the 22400 level, it is likely to encounter resistance in the range of 22480 – 22450. A viable trading strategy in this scenario would involve considering a short position with a stop-loss order set at 22500, targeting levels between 22350 and 22300.
Should prices sustain above 22500, a bullish momentum may lead it towards 22557 initially, with further resistance levels anticipated at 22635.
Conversely, in the event of a flat or gap-down opening below 22300, traders may consider initiating buying positions near 22260, setting a stop-loss order at 22230, and targeting a move towards 22400. A breach below 22230 might lead to a buying opportunity in the range of 22185 – 22141, although caution is advised as this zone may act as both a liquidity sweep area and a resistance level if prices trade below 22140.
For buying trades, it is advisable to place stop-loss orders below 22125, targeting levels between 22260 and 22350.