NIFTY : Levels and Plan for 02-Dec-2024

Nifty 50 Trading Plan for 02-Dec-2024


On 01-Dec-2024, Nifty traded in a well-defined structure, oscillating between the Golden Retracement Zones for buyers and sellers. The market displayed a Change of Character (CHoCH), with price initially retesting the buyer's support zone near 23,786 before reversing toward the seller's resistance zone at 24,413. Key levels such as 24,250 and 24,112 acted as dynamic Opening Support/Resistance levels. The chart also highlighted a Yellow Zone for sideways movements, Green Zones for bullish trends, and Red Zones for bearish scenarios.

Detailed Trading Plan for 02-Dec-2024

1. Gap-Up Opening (Above 24,250, up to 100+ points)
   
   If Nifty opens with a gap-up beyond 24,250, it will enter the Opening Resistance Zone. In this scenario:
   
   Watch for rejection near 24,413 or higher. If rejection is confirmed, initiate short positions targeting 24,250 as the first support and 24,112 for extended profits.
   For sustained bullishness, monitor an hourly candle close above 24,413. If this occurs, consider long positions with a target at the Profit Booking Zone around 24,483.
   [Tip] Avoid chasing trades immediately after the gap-up. Allow prices to stabilize for 15–30 minutes to validate the trend.
   
   
2. Flat Opening (Near 24,112 to 24,130 range)
   
   In case of a flat opening, the Opening Support/Resistance at 24,112 will be critical:
   
   If prices sustain above 24,112 with strong buying, consider initiating long positions, targeting 24,250 and 24,413.
   If Nifty fails to hold 24,112, expect a test of 24,030 (Buyer's Opening Support) and potentially 23,940 (Last Support for Intraday).
   [Tip] Use tight stop losses when trading near the flat opening zone due to potential whipsaws.
   
   
3. Gap-Down Opening (Below 24,030, down to 100+ points)
   
   A gap-down opening near or below 24,030 would signal bearish sentiment:
   
   Observe buyer activity near 23,940. If support holds, initiate longs with targets of 24,030 and 24,112.
   If 23,940 is breached, expect further downside toward 23,832 or even 23,786, the Buyer's Support for sideways action.
   [Tip] Manage risk effectively by waiting for hourly candle confirmation in case of volatile downward moves.
   
   Risk Management Tips for Options Traders
   
   Trade options with a defined stop loss and avoid overleveraging.
   Use spreads (e.g., Bull Call Spread or Bear Put Spread) to reduce premium outflows and limit risk.
   Monitor implied volatility (IV) levels, as sudden changes can impact option premiums significantly.
   Summary and Conclusion
   
   Nifty's key levels for 02-Dec-2024 include 24,413 (Profit Booking Zone), 24,250/24,112 (Critical Opening Support/Resistance), and 23,940/23,786 (Key Buyer Support Zones).
   Focus on hourly candle confirmations for validating breakouts or breakdowns.
   Stay cautious during initial market volatility and align trades with the prevailing trend as highlighted by the Yellow (sideways), Green (bullish), and Red (bearish) zones.
   Disclaimer
   I am not a SEBI-registered analyst. This analysis is for educational purposes only. Please consult your financial advisor before making trading decisions.