Today's updated chart focuses on the reaction to critical zones, emphasizing disciplined trade setups.
Trading Scenarios for 9-Jan-2025
- Gap-Up Opening (Above 50,219)
If Bank Nifty opens above 50,219, observe the price action at the Swing Resistance Zone (50,735). If price faces rejection here, a bearish move toward 50,219 or 50,038 could follow. A breakout above 50,735 will signal strong bullish momentum with targets near 50,850-50,900.
Action Plan: Look for short opportunities near 50,735 with a stop-loss of 50,800. For bullish trades, wait for sustained closes above 50,735 before entering.
Risk Management: Avoid aggressive positions in the opening 15 minutes to prevent impulsive trades. Use small position sizes for trades in the resistance zone. - Flat Opening (Between 49,794-50,038)
A flat opening between 49,794 (support) and 50,038 (resistance) demands patience. Price action will determine the next move. A break above 50,038 may lead to a test of 50,219. Conversely, rejection at 50,038 could pull the index back toward 49,509.
Action Plan: For longs, wait for a sustained move above 50,038, targeting 50,219. For shorts, watch for rejection at 50,038, aiming for 49,509.
Risk Management: Keep a strict stop-loss of 50 points from entry. Avoid overtrading in a narrow range to preserve capital. - Gap-Down Opening (Below 49,509)
In case of a gap-down below 49,509, the Last Intraday Support Zone (49,132) will be critical. Any sustained move below this level can lead to further weakness toward 48,992. If support holds, expect recovery toward 49,509 and 49,794.
Action Plan: For aggressive longs, watch for a bullish reversal at 49,132 with a tight stop-loss below 49,100. Avoid fresh longs below 48,992 to minimize risk.
Risk Management: Use spreads or deep OTM options for high-risk gap-down scenarios to control losses.
Tips for Options Trading
Avoid holding options overnight unless hedged.
Use straddles/strangles near critical support or resistance levels for volatile moves.
Monitor delta and gamma risks, particularly near expiry.
Summary and Conclusion
Key levels to watch: 50,038 as opening resistance and 49,794 as opening support.
Trend zones: Yellow for sideways, Green for bullish, and Red for bearish.
Patience and disciplined execution will be crucial, particularly during the first 30 minutes
.
Disclaimer: This analysis is for educational purposes only. I am not a SEBI-registered analyst. Please consult your financial advisor before trading.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.