Intraday Trend Analysis & Trading Plan of Nifty & Bank Nifty Live Trading - December 26, 2022

Intraday Trend Analysis & Trading Plan of Nifty & Bank Nifty Live Trading - December 26, 2022

Intraday trading can be a lucrative but also risky venture. One of the keys to success in intraday trading is having a solid trend analysis and trading plan in place. In this blog post, we will delve into the concept of intraday trend analysis and how it can be applied to the Nifty and Bank Nifty live trading markets.

By understanding the trends and implementing a well-thought-out trading plan, traders can increase their chances of making profitable trades and minimize potential losses.

Intraday Trend Analyses and Trading Plan for Nifty & Bank Nifty Live Trading – December 26, 2022

After a highly fluctuating market, the Market starts the trading session positively. and we have seen a short covering from lower levels.

We were expecting this and we discussed it in our live market session, which starts at 10:00 AM every trading day to analyze intraday trend analysis based on chart and OI data to place intraday trades in Nifty and BankNifty.

Now lets look at the chart and OI data to find the intraday trend and weekly range:

Positional Trend in Nifty and BankNifty

Now look at the below chart for a positional view:

Nifty and BankNifty live trading chart

After a breakdown from crucial levels i.e. 18382 & 43288 (spot levels) respectively, we have seen a huge selling in the market that manage to break crucial support levels i.e 18070 in Nifty and 42555 in BankNifty.

Now after the sharp fall in the last week, Nifty and BankNifty both were closed above the next support levels i.e. 17817 in Nifty and 41567 in Banknifty.

Now, these two levels are acting as the immediate support levels for the current weekly expiry.

Nifty Intraday Chart

Looking at the chart, Nifty is now taking support from its 50% retracement level, 17817. If you use this tool, you should be aware that the 50% – 61.8% level serves as a reversal zone. However, it is too early to place any long bets.

So wait for 2-3 sessions and if Nifty manages to sustain above 17817 then we can place a long bet by keeping stoploss below 17565 (61.8% retracement level).

A breakdown from 17565 will drag into the grip of the bear completely and that would be a good time to initiate a short bet.

So based on the chart, we can expect 17800 – 18100 is the weekly range.

Bank Nifty daily Chart for Bank Nifty Live trading

On the other hand, after giving a breakdown from 42555 and hitting the downside target of 41565, now it is taking support near the 38.2% retracement level.

You can see clearly on the chart that this is a big support zone in banknifty. So it would not be any surprise if we saw some upside levels in the coming trading session.

Based on the chart, 41567 is acting as the support level and 42555 is acting as the resistance.

So, based on the aforementioned charts, we can conclude that both the Nifty and BankNifty are trading in a range and that a range-bound strategy would be appropriate in this situation.

Intraday Trend Analyses and Trading Plan for Nifty & Bank Nifty Live Trading – December 26, 2022

Nifty Option Chain live

Now, If you look at the OI data, you will find that long buildup on the call side and a short buildup on the PUT side in Nifty. The same thing can see in BankNifty also where short buildup on PUT side and a long buildup on the Call side. So at first look, we can see that the trend is Bullish in both indices based on our trend-following excel sheet.

The intraday Trend is “Bullish” in Nifty and BankNifty. So we should sell puts in both the indices. And we can adjust our position if there is any change in the trend.

Intraday Trades for Nifty and Bank Nifty live trading :

  1. In Nifty I have sold 17700 PE
  2. In BankNifty I have sold 41400 CE

We use a unique method to analyze Intraday trends, strike selection, and perfect entry, which I have shared in this my below course:

I hope this analysis will help you to take better decisions. In case you have any queries feel free to leave them in the comment box. or you can chat with me through WhatsApp.

DISCLAIMER: We are not SEBI research analysts. Views and trading strategies are posted in this weekly market newsletter only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product or its contents. This product is not a recommendation to buy or sell, but rather a guideline for interpreting specified analysis methods.  This information should only be used by investors and traders aware of the risk inherent in securities trading.

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