NIFTY : Trading levels and Plan for 12-May-2025

📊 NIFTY Trading Plan for 12-May-2025 (15-min Chart)

We’re currently trading near the 24,038 level. The chart suggests clearly defined support and resistance zones which will guide our trading actions depending on the opening. Remember: we define a gap opening as 100+ points away from the previous close.

🟢 SCENARIO 1: Gap-Up Opening (Above 24,266)

If Nifty opens with a gap-up above the Opening Resistance Zone (24,217 – 24,266) and sustains above it:

1. []Watch for price action near 24,266 – if it holds, bulls might push toward the last intraday resistance of 24,450.
   []Ideal entry: On retest of 24,266 with a strong bullish candle.
   []Targets: 🎯 24,375 – 24,450[]Stop Loss: 🔻 Below 24,200 on an hourly candle close.
   

However, if price opens above but slips back below 24,217, it might indicate a false breakout. In that case, wait for confirmation before taking aggressive trades.

   

🟨 SCENARIO 2: Flat Opening (Between 24,038 and 24,100)

A flat opening would place us within the current trading range. This is a zone of indecision, so patience is key.

1. []Observe how price reacts near the Opening Resistance Zone (24,217 – 24,266) and Opening Support Zone (24,005 – 23,974).
   []Bullish bias above 24,100 with confirmation candle targeting 24,217 and eventually 24,266.
   []Bearish bias only below 23,974 – look for breakdown and confirmation for short opportunities.
   []Avoid trades within this tight zone until a breakout or breakdown happens with volume.
   

Wait at least 15–30 mins post-opening for direction clarity. Let the market show its hand.

   

🔻 SCENARIO 3: Gap-Down Opening (Below 23,900)

This could lead to a test of the Last Support Zone: 23,682 – 23,771. This zone is crucial.

1. []If the index opens below 23,900 and heads toward 23,771–23,682, expect demand from this support.
   []Look for bullish reversal candles in this zone for a possible intraday bounce.
   []If breakdown happens below 23,682 with volume and a 15-min close, market could slide further towards 23,550–23,450 levels.
   []Avoid catching falling knives. Wait for confirmation (hammer, bullish engulfing).
   

Be cautious on put side here unless breakdown sustains – whipsaws are common near strong supports.

   

📘 Risk Management Tips for Options Traders 🧠

1. []Avoid buying deep OTM options. Stick to ATM or slightly ITM contracts for better delta and lower decay.
   []Always define your risk with stop-loss based on candle closes (ideally 15 or 1-hour).
   []Don’t trade just on gap logic. Wait for the price to respect or reject key levels.
   []Trail your profits instead of aiming for unrealistic targets. Consistency > Jackpot.
   
2. Position sizing is key. Never risk more than 1–2% of your capital on a single trade.
   

📌 Summary & Conclusion:

Key Levels to Watch: 👀

🔸 Opening Resistance Zone: 24,217 – 24,266
🔸 Opening Support Zone: 24,005 – 23,974
🔸 Major Support Area: 23,682 – 23,771
🔸 Upside Resistance: 24,450

This is a day to let the market settle in early trades. Direction will be determined by breakout or breakdown from the marked zones. Don’t chase; instead react to the market’s structure with discipline.

⚠️ Disclaimer:
I am not a SEBI-registered analyst. All views shared here are for educational purposes only. Please consult your financial advisor before taking any position. Trade at your own risk.