Market Analysis and Trade Setup for Nifty (07/01/2025)

Market Bias for 07/01/2025:
The market remains bearish as long as the price stays below 23,700. However, potential opportunities for both bullish pullbacks and bearish continuations exist based on key levels and conditions.

Key Levels to Watch

Immediate Resistance (Supply Zone):

23,700 - 23,743: Fair Value Gap (FVG) and liquidity rejection zone.
If this level is breached, watch for a move toward 23,800 or 23,900.

Immediate Support (Demand Zone):

23,500 - 23,540: Strong demand zone from liquidity sweeps.
A breakdown below this level could lead to significant downside.

Critical Levels:

PDH: 23,742.
PDL: 23,459.
POC (High Volume Node): 23,600.

Trade Setups for Tomorrow

Bullish Trade Setup (Reversal Play)
Entry: Above 23,700 (FVG Retest).
Stop Loss: Below 23,650.
Target 1: 23,800.
Target 2: 23,900.
Confirmation Indicators:
RSI crosses above 50.
VWAP breakout with buy-side volume.

Bearish Trade Setup (Breakdown Play)

Entry: Below 23,530 ( liquidity sweep).
Stop Loss: Above 23,600.
Target 1: 23,450.
Target 2: 23,400.
Confirmation Indicators:
RSI remains below 40.
Strong sell-side volume below support levels.


Indicators to Monitor
VWAP: Price action above or below VWAP will dictate intraday bias.
RSI: Look for momentum shifts near key levels (above 50 for bullish, below 40 for bearish).
Volume: Watch for spikes near 23,600 (POC) to confirm institutional activity.

Key Observations

Bearish Bias:
Price remains bearish below 23,700; expect continuation toward 23,500 - 23,400.

Bullish Pullback:
Sustained buying above 23,700 could trigger short covering toward 23,900.

Final Thoughts
Avoid Choppy Zones: Between 23,600 - 23,700, price action may remain indecisive without volume.

Disclaimer
This analysis is for educational purposes only and should not be considered financial advice. Please do your own research and consult with a financial advisor before making any trading decisions.