Nifty Chart
Current Price: 22,553.3
Support Zone: 22,455 - 22,350
22,455: This level represents the 126.8% extension of the swing from 26,277 to 23,263.
22,350: This level represents the 76.80% retracement of the swing from 26,277 to 21,281.
Targets on Bounce:
First Target: 23,263 (previous swing high).
Second Target: 23,779 - 23,974 (a higher resistance range).
Analysis:
Support Zone: The 22,455 - 22,350 range is a critical support area. If the Nifty holds this zone, it could act as a strong base for a bounce.
Bounce Potential: Any rebound from this support zone could aim for the first target at 23,263, which is a key resistance level. If the momentum is strong, the rally could extend toward the 23,779 - 23,974 range.
Risk: If the support zone (22,455 - 22,350) fails to hold, the Nifty could see further downside, potentially testing lower levels.
Trading Strategy:
Conservative Approach: Wait for confirmation of a bounce from the support zone (e.g., bullish candlestick patterns or momentum indicators turning positive) before entering long positions.
Aggressive Approach: Consider scaling into long positions near the support zone (22,455 - 22,350) with strict stop-losses below 22,350.
Targets: Book partial profits near 23,263 and trail the rest toward 23,779 - 23,974.
Key Considerations:
Monitor global market trends, as they can influence Nifty's direction.
Keep an eye on key economic data or events that could impact market sentiment.
Use proper risk management to protect against unexpected downside moves.
