NIFTY Trading Strategy for December 26, 2023
The past week witnessed considerable volatility in NIFTY, culminating in a rejection and consolidation near its upside retracement resistance during the final trading session. This left traders in a state of uncertainty. Looking ahead to the last week of December 2023, a cautious approach suggests a preference for "sell on rise" trades unless prices convincingly sustain above 21,504, indicating a potential downward move towards the 21,000 - 20,951 range (weekly view).
**Recommended Trading Strategy for December 26, 2023:**
1. **Buy Scenario:**
- If prices open above 21,350 and find support at 21,330,
- Buy near 21,350 with a stop loss (SL) at 21,325 for a target range of 21,464 to 21,504.
- If prices sustain above 21,520, anticipate further upside towards 21,606 - 21,646.
2. **Sell Scenario:**
- If prices open high near 21,500, potentially prompting profit booking and a subsequent drop to around 21,350,
- Short below 21,464 with a SL at 21,504-21,510 for a target range of 21,350 - 21,330.
3. **Flat Trading Scenario:**
- If prices trade flat and below 21,330, facing rejection near 21,350-21,360,
- Consider a risky short entry for the target of 21,195 with a SL at 21,360.
4. **Lower Opening Scenario:**
- If prices open lower below 21,180, potentially leading to sideways movement in the range of 21,195 - 21,250,
- Plan a buying trade near 21,195 with a SL of 20 points for the target of 21,250 - 21,275 - 21,300.
- In case of a stop loss, consider a second buying trade near 21,100 - 21,085 with a SL of 21,065 for the target of 21,200 - 21,250.
- The range of 20,951 - 20,896 is considered a favorable buying zone for positional traders with a SL of 20,800.
This strategy aims to provide guidance in different market scenarios, allowing traders to adapt to changing conditions on December 26, 2023.
The past week witnessed considerable volatility in NIFTY, culminating in a rejection and consolidation near its upside retracement resistance during the final trading session. This left traders in a state of uncertainty. Looking ahead to the last week of December 2023, a cautious approach suggests a preference for "sell on rise" trades unless prices convincingly sustain above 21,504, indicating a potential downward move towards the 21,000 - 20,951 range (weekly view).
**Recommended Trading Strategy for December 26, 2023:**
1. **Buy Scenario:**
- If prices open above 21,350 and find support at 21,330,
- Buy near 21,350 with a stop loss (SL) at 21,325 for a target range of 21,464 to 21,504.
- If prices sustain above 21,520, anticipate further upside towards 21,606 - 21,646.
2. **Sell Scenario:**
- If prices open high near 21,500, potentially prompting profit booking and a subsequent drop to around 21,350,
- Short below 21,464 with a SL at 21,504-21,510 for a target range of 21,350 - 21,330.
3. **Flat Trading Scenario:**
- If prices trade flat and below 21,330, facing rejection near 21,350-21,360,
- Consider a risky short entry for the target of 21,195 with a SL at 21,360.
4. **Lower Opening Scenario:**
- If prices open lower below 21,180, potentially leading to sideways movement in the range of 21,195 - 21,250,
- Plan a buying trade near 21,195 with a SL of 20 points for the target of 21,250 - 21,275 - 21,300.
- In case of a stop loss, consider a second buying trade near 21,100 - 21,085 with a SL of 21,065 for the target of 21,200 - 21,250.
- The range of 20,951 - 20,896 is considered a favorable buying zone for positional traders with a SL of 20,800.
This strategy aims to provide guidance in different market scenarios, allowing traders to adapt to changing conditions on December 26, 2023.