If you're looking for a potential short trade setup in Nifty, using price action analysis could be a useful approach. By analyzing the price movement on the charts, you can identify key levels and patterns that may indicate a potential trend reversal or pullback.
One possible short trade setup could be to wait for a bearish candlestick pattern to form at a key resistance level. This could be a shooting star, a bearish engulfing pattern, or any other bearish candlestick pattern that you are familiar with.
Once you have identified a potential setup, you can use appropriate risk management techniques, such as placing a stop loss above the resistance level, to limit your potential losses if the trade goes against you.
Remember, trading always involves risk, and there is never a guarantee that a setup will work out as expected. It is important to always practice proper risk management and to only risk what you can afford to lose.