Scenario 1: If NIFTY opens with a gap up above 22800 and maintains its position, it may ascend towards the levels of 22873 – 22920, with support at 22784. However, failure to sustain and a swift drop below 22784, followed by trading below 22748, could lead to a decline towards 22625 – 22600-22590. At this juncture, a support level is anticipated, and a buying opportunity with a stop loss at 22550 could be considered, targeting initially 22650 – 22700.
Scenario 2: In the event of a flat opening below 22750, resistance may hinder upward movement, leading to a descent towards 22625 – 22590 – 22565. Support could be found at this level. If prices linger between 22565 – 22590 and 22600 acts as resistance, further downward movement to 22438 is possible. Conversely, if prices hold above 22300 and find support beyond 22590, a retracement towards 22650 – 22700 could occur. Buying is advisable post a flat opening only if sustained above 22784, with the mentioned upside levels in consideration.
Scenario 3: A gap down opening below 22600 may find support at 22592 – 22565, leading to a recovery towards 22650 – 22700. It's advisable for buyers to book profits at this point and observe if prices continue higher, especially if they sustain above 22750. Conversely, a break below 22565, with rejection at 22600, could lead to further downside towards 22450 – 22438 upon trading below 22550.
Conclusion: Depending on the scenarios, traders are suggested to adjust their positions accordingly, considering the indicated support and resistance levels. It's essential to closely monitor price movements and act with prudence.
Disclaimer: Trading in financial markets involves risks and is subject to market volatility. The provided trading levels and plan are for informational purposes only and should not be considered as financial advice. Traders should conduct their own analysis and consult with a financial advisor before making any trading decisions.