NIFTY : Trading levels and Plan for 05-Dec-2025

📊 NIFTY TRADING PLAN — 05 DEC 2025

Price closed near 26,010, sitting between Opening Resistance (26,069) and Opening Support (25,994).
The structure is recovering from a corrective fall, but Nifty must break above 26,069 to show strength, while downside liquidity still sits at Last Intraday Support (25,922–25,934) and the deeper Important Buyer’s Support (25,833–25,864).

Market will likely react strongly to these zones.

🚀 1. GAP-UP OPENING (100+ points)

A gap-up near or above 26,110–26,150 will place Nifty closer to the major resistance zone.

1. 
   1. If price opens above 26,069 and holds (positive sign)
   • Avoid chasing the first candle.
   • Wait for a retest of 26,069 — this confirms buyers are genuinely strong.
   • If retest holds → Long entry toward 26,165 → 26,186 (Resistance Zone).
   • Partial booking advisable inside the resistance box.
   
   2. If gap-up opens directly inside 26,165–26,186 (Last Intraday Resistance)
   • High probability of rejection and profit booking.
   • Avoid fresh longs in the resistance box.
   • Look for reversal wicks → Possible short trade back toward 26,069.
   
   3. If breakout sustains above 26,186
   • Momentum expansion likely.
   • Upside target becomes 26,222.
   • Partial profit booking recommended due to stretched move.
   

📌 Educational Note:
Gap-ups often trigger emotional buying. Retest entries reduce risk and align you with institutional flow.

⚖ 2. FLAT OPENING (Near 26,000 ± 40 pts)

A flat open provides the cleanest structure and the most reliable intraday setups.

1. 
   1. If price sustains above 26,069
   • Strong sign of buyer intent.
   • Long setups activate above 26,069 with targets: 26,165 → 26,186 → 26,222.
   • Protect the trade with tight SL under the breakout zone.
   
   2. If price rejects 26,069
   • Look for bearish wick patterns or CHoCH.
   • Potential drop toward 25,994.
   • Break below 25,994 → Trend weakens → Next stop 25,922.
   
   3. If price trades between 25,994–26,069
   • Expect range movement.
   • Buy low (25,994) and sell high (26,069) only with confirmation.
   • Avoid aggressive trades inside the range.
   

📌 Educational Note:
Flat opens allow price action to show its true direction—higher-lows indicate bullishness, lower-highs signal weakness.

📉 3. GAP-DOWN OPENING (100+ points)

A gap-down near 25,900–25,940 puts the market into key demand territory.

1. 
   1. If gap-down opens inside Last Intraday Support (25,922–25,934)
   • Never short this zone blindly — expect buyer reactions.
   • Look for reversal signs: hammer, bullish engulfing, CHoCH.
   • If reversal confirmed → Long toward 25,994 → 26,069.
   
   2. If gap-down opens directly into Important Buyer’s Support (25,833–25,864)
   • This is a strong liquidity pocket.
   • Ideal for bullish reversal trading.
   • Watch price action carefully — if reversal prints → Long toward 25,922 → 25,994.
   
   3. If support breaks decisively below 25,833
   • Avoid chasing breakdown.
   • Wait for retest of 25,833–25,864.
   • If retest rejects → Short toward 25,770 → 25,720 (measured move targets).
   

📌 Educational Note:
Gap-downs often act as liquidity traps. Smart money accumulates aggressively before price reverses upward. Always wait for confirmation.

🛡 RISK MANAGEMENT TIPS FOR OPTIONS TRADERS

1. 
   1. Avoid the first 5 minutes on a gap-up or gap-down day.
   The market needs to stabilise.
   
   2. Do NOT buy far OTM options after a big gap.
   Premium crush eats your capital.
   
   3. Always keep a price-level-based stop-loss, not a premium-based SL.
   
   4. Follow 1–2% maximum risk per trade.
   
   5. When IV is high → Prefer selling strategies (credit spreads).
   When IV is low → Option buying becomes favourable.
   
   6. Book partial profits at key zones such as 25,994, 26,069, 26,165.
   
   7. Never revenge trade. Reset your mind after a stop-loss hit.
   

📌 SUMMARY & CONCLUSION

• Bullish bias above 26,069, with upside targets 26,165 → 26,186 → 26,222.
• Range-bound behaviour expected between 25,994–26,069.
• Strong bullish reversal zones below:
– 25,922–25,934
– 25,833–25,864
• Gap openings must always be traded with retests and confirmations.
• Stick to structure, avoid emotional entries, and respect your stop-loss.

⚠ DISCLAIMER

I am not a SEBI-registered analyst.
This trading plan is for educational purposes only and should not be considered investment advice.
Market conditions can change rapidly—trade using your own judgment and strict risk management.