In the previous trading session, Nifty attempted to hold its last reversal zone support (Liquidity Sweep Zone) of 22591 – 22567. However, it started trading below this level, indicating trapped buyers likely to exit as prices near this zone, which could now act as resistance. The ongoing tensions between Israel and Iran may induce panic selling, potentially leading to a faster price decline than anticipated. Here's the trading plan for April 15, 2024:
Gap Up Opening: Although the likelihood is low, in case of a gap-up opening above 22590, anticipate possible immediate price drops or rejection near 22640 followed by a sharp decline below 22550 towards 22404. Look for selling opportunities until prices sustain above 22590 and demonstrate upward price action.
Flat Opening: In the event of a flat opening, expect rejection around 22534 – 22568 leading to a sharp decline towards 22404. Further downside movement below 22380 could extend to 22245 – 22178, where prices may find support and trade sideways.
Gap Down Opening: If prices open with a gap down below 22400, consider selling on any rise above 22400. Rejection near 22470 – 22500 could prompt a decline towards 22245 – 22178.
Conclusion: Focus on the sell-on-rise strategy unless prices sustain above 22590. Buying should be considered only if prices sustain above 22717 or between 22178 – 22200 on the lower side.
Disclaimer: Trading involves substantial risk and is not suitable for everyone. The provided analysis is for informational purposes only and should not be considered financial advice. Please conduct thorough research and consult with a financial advisor before making any investment decisions.