nifty setup for 20/1/23

Nifty gave a gap down opening and tested the support of 18060 and ten tested the resistance of 18150 and stayed range bound in a managed expiry.

with all global ques showing negativity, a gap down opening is expected on friday(20/1/23).

in case of gap down opening, the plan will be to wait for retest at 18000 levels before entering a trade.

Any PE buy trade will also be dependent on whether prices closes below 200 MA (green line) on a 5 min candle. in case of PE trade, the target could be 17940/17855/17795, with initial sl immediately above 200 MA.

In case of rejection at 200 MA, CE can be taken with target up to 50 MA line.

A gap up could be tricky situation and at best could be avoided as an option buyer as R/R will not be much favourable.