Nifty 50 Trading Strategy for 2nd January
- KKS
- Jan 1
- 2 min read
Updated: Jan 2
Nifty has advanced more than 90 points on 1st January. The prices have shown strength in last two days but the prices are still consolidating. As discussed in our trading plan there was a liquidity pool near last buying swing low at 23570. The prices collected this liquidity and moved on to the level of 23710. However, the prices did not waited there and crossed the level easily. To get an entry to the long side we wanted a rejection above 23710 and creating a new high. However, the prices were not able to break the day high immediately and took time till 1:45 PM to break the new high. I was not convinced at the long entry as the day high was not broken by the prices immediately and took some time. This is not typical of a good momentum and hence this trade was avoided.
Nifty 50 long Important levels.
Level 1: 23911
Level 2: 23825
Level 3: 23680
Level 4: 23570
Level 5: 23461
Long trading strategy for 2nd January in Nifty 50
Scenario #1: Price open flat and go below 23680 and show quick recovery above the last swing high. It should form a liquidity sweeping pattern near 23825. If there is a good close above that level we can expect the price to go till 23911.
Scenario #2: Price open slightly gap down and go near 23570 and the recovers quickly above the swing high for the day and then form liquidity sweeping pattern near 23680 and give a good breakout. The target can be today's day high, 23825.
Short trading strategy for 2nd January in Nifty 50
Scenario #1: Price open slight gap up and take the buying liquidity above 23911 and then trade below the day swing low and sustain below 9 EMA. The target can be 23680.
Scenario #2: Prices open flat and take the buying liquidity above 23825 and then falls below the intraday support and sustain below 9 EMA. The target can be till 23570.
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