Nifty Trade Setup for Tuesday, February 4, 2025
The Nifty 50 index experienced a volatile session on Monday, February 3, 2025. The benchmark index opened at 23,319.35, attempting to stay above the previous low of 23,318 recorded on Saturday’s trade. However, market sentiments remained weak, leading to a fluctuating session where Nifty made a high of 23,381.60 and a low of 23,222. Eventually, the index closed at 23,361.05, marking a decline of 121.10 points (-0.52%).
Key Technical Levels and Resistance Zones
Nifty has been showing resistance at the 23,630 zone, which has now become a crucial level to watch. During Saturday’s session, the index attempted to breach this level but failed to sustain above it. A historical reference to this resistance level dates back to January 9, 2025, when Nifty fell sharply from this zone and corrected down to 22,775 by January 27, 2025. This highlights the importance of 23,630 as a significant hurdle for the bulls.
Trade Setup for Tuesday, February 4, 2025
Traders should keep a close watch on the key levels mentioned below:
Shorting Strategy:
– Sell Nifty spot below 23,320
– Target: 23,170
– Stop Loss: 23,370
– Rationale: If Nifty breaks below 23,320, we may witness further downside momentum towards 23,170.
Long Strategy:
– Buy Nifty only if it opens above 23,350 and sustains above 23,380 with strong volumes.
– Target: 23,530
– Stop Loss: 23,322
– Rationale: If the index shows strength above 23,380 with significant volume, we can expect a rally towards 23,530.
Market Sentiment & Open Interest Analysis
– Strong Open Interest (OI) on the Put side at 23,300: Indicates a support level where traders are expecting Nifty to hold.
– Strong Open Interest (OI) on the Call side at 23,500: Suggests resistance as call writers are expecting limited upside.
Given this data, traders should exercise caution and follow strict risk management strategies while trading on Tuesday.Nifty remains in a crucial zone where the **23,630 resistance level** is yet to be convincingly breached. If the index sustains above 23,380, we could see a rally towards 23,530, while a failure to hold 23,320 could lead to a downside towards 23,170. With strong Open Interest at 23,300 on the put side and 23,500 on the call side, volatility is expected to persist in the upcoming session.
*Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Traders should do their own research and consult with a financial expert before making any trading decisions. Trading in the stock market involves risk, and past performance is not indicative of future results.
#Nifty,