Nifty - Immediate SWAP zones and gap up/down trade scenarios

NIFTY

Nifty fell straight 200+ points in the first 30 mins. of today's session and then consolidated between 9430 and 9350 range. 9430-9440 has been strong resistance for Nifty previously (though it would have become weaker as it has been tested multiple times) and the 9347-9360 region has also been a important swap zone too for the past few sessions as can be clearly seen in the chart. So, if Nifty opens above or below the mentioned ranges, they will act as support and resistance accordingly.

Looking at major global indexes like DOW and SPX/SPY, there seems to be a lot of selling pressure present in those markets and SGX Nifty has also seen a lot of downside today and is currently trading at 9218 at the time of this writing. Thus, there is high probability of gaping down tomorrow. In any case, do not blindly short of long from the first candle itself if you are a conservative trader and try to wait for a direction. Also, keep updating STOP LOSS if trade moves in your direction because you never know in current market situations when the market will reverse and you may not get time to exit at the point you want.

In case we open somewhere near today's close, wait for above mentioned support and resistance zones to break before entering the trade and always keep possibility of traps in mind.

Options expiry day: In general, Nifty has moved approximately 200 points on an average over the past few sessions and I would be expecting tomorrow's range also to be somewhere near 180 points (but obviously there are no guarantees). Tomorrow is options expiry day so we can also expect a sideways market after the first move (like last Thursday's session).

Daily RSI
BANKNIFTY: ~52 - Neutral Zone


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