This is Nifty Analysis for Wednesday 20th Aug 2025.
Nifty formed a bullish candle and moved up by 0.4% on Tuesday. Nifty is above short term EMAs in Daily timeframe, but is near immediate resistance and psychological level 25,000. Though short term Technicals indicate bullishness, wait for a pullback and enter trade. These 2 strategies may work best for Tuesday.
Trade Strategy 1: (Higher Probability)
Enter Long position (Call Option) after retracement confirmation around 61.8% of recent swing - around 24,860. Stoploss just below 24,800. Target 1 just below previous day high 25,000. This gives 1 is to 2 risk reward ratio. Target 2 is around 25100. This gives 1 is to 3.5 risk reward ratio.
Trade Strategy 2: (Lower Probability)
Enter Short position (Put Option) after bearish confirmation candles around 24,760 . Stoploss just above 24,810. Target 1 till Monday Gap Up filling around 24,670. This gives 1 is to 1.5 risk reward ratio.
Safe traders may consider Trailing Stoploss after 1 is to 1 risk reward ratio is achieved.
Note: This is for educational purposes only and not a trade recommendation. I am not SEBI registered. Kindly do your own research before doing any financial transaction.
Nifty formed a bullish candle and moved up by 0.4% on Tuesday. Nifty is above short term EMAs in Daily timeframe, but is near immediate resistance and psychological level 25,000. Though short term Technicals indicate bullishness, wait for a pullback and enter trade. These 2 strategies may work best for Tuesday.
Trade Strategy 1: (Higher Probability)
Enter Long position (Call Option) after retracement confirmation around 61.8% of recent swing - around 24,860. Stoploss just below 24,800. Target 1 just below previous day high 25,000. This gives 1 is to 2 risk reward ratio. Target 2 is around 25100. This gives 1 is to 3.5 risk reward ratio.
Trade Strategy 2: (Lower Probability)
Enter Short position (Put Option) after bearish confirmation candles around 24,760 . Stoploss just above 24,810. Target 1 till Monday Gap Up filling around 24,670. This gives 1 is to 1.5 risk reward ratio.
Safe traders may consider Trailing Stoploss after 1 is to 1 risk reward ratio is achieved.
Note: This is for educational purposes only and not a trade recommendation. I am not SEBI registered. Kindly do your own research before doing any financial transaction.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.