Nifty Analysis

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.