Intro: Previous Day's Plan vs. Actual Chart Movement
In the trading plan for 2-Jan-2025, we highlighted key zones for Bank Nifty, such as the Opening Support/Resistance Zone and the Important Resistance . The actual price movement adhered to the plan, respecting the key levels.https://www.tradingview.com/chart/BANKNIFTY/w87fxyLK-BANKNIFTY-Trading-plan-and-levels-for-02-Jan-2025/
The bullish momentum pushed the price into the profit booking zone . This reinforces the reliability of the outlined levels and the importance of analyzing price behavior in these zones.
Trading Plan for 3-Jan-2025
Risk Management Tips for Options Trading:
Avoid over-leveraging in volatile market conditions.
Always maintain a risk-to-reward ratio of at least 1:2.
Use stop-loss orders based on 15-minute or hourly candle closes to prevent large losses.
Adjust position sizing to suit your risk appetite and market volatility.
Summary and Conclusion:
The key levels for Bank Nifty on 3-Jan-2025 are:
Resistance: 51,779-51,876 and 52,166-52,385.
Support: 51,475-51,571 and 51,232.
Understand the trend based on price action in these zones:
Green for bullish opportunities, Yellow for consolidation, and Red for bearish trends.
Trade cautiously and stick to the plan for optimal results.
Disclaimer:
This trading plan is for educational purposes only. I am not a SEBI-registered analyst. Please consult your financial advisor before making any trading decisions.
In the trading plan for 2-Jan-2025, we highlighted key zones for Bank Nifty, such as the Opening Support/Resistance Zone and the Important Resistance . The actual price movement adhered to the plan, respecting the key levels.https://www.tradingview.com/chart/BANKNIFTY/w87fxyLK-BANKNIFTY-Trading-plan-and-levels-for-02-Jan-2025/
The bullish momentum pushed the price into the profit booking zone . This reinforces the reliability of the outlined levels and the importance of analyzing price behavior in these zones.
Trading Plan for 3-Jan-2025
- If Market Opens Gap Up (200+ Points Above Previous Close):
If prices open above the Important Resistance Zone (51,779-51,876), watch for consolidation in this range. If sustained, it can act as support for an upward move toward the Profit Booking Zone (52,166-52,385).
In case prices fail to sustain above 51,779, look for signs of a pullback toward the Opening Support Zone (51,605-51,659).
📈 Action Plan:
Wait for confirmation with a 15-minute candle close above 51,876 before entering long positions.
Use stop loss at 51,779 to manage risk.
📊 Trend Indicators:
Green: Bullish Move Expected. - If Market Opens Flat (Near Previous Close):
Observe price behavior near the Opening Support Zone (51,475-51,571). Sustained trading above this zone can trigger a recovery move toward 51,779-51,876.
However, a breakdown below 51,475 could lead to a bearish trend toward the Retracement Level (51,232).
📈 Action Plan:
For long trades, wait for a breakout above 51,605 with stop loss at 51,475.
For short trades, consider entry below 51,475, targeting 51,232 with a stop loss at 51,571.
📊 Trend Indicators:
Yellow: Sideways Trend Expected. - If Market Opens Gap Down (200+ Points Below Previous Close):
In case of a gap-down opening near 51,232, watch for price recovery to test the Opening Support Zone (51,475-51,571). If prices fail to recover and sustain below 51,232, expect further downside.
A bounce back above 51,232 can create an opportunity for a reversal move toward 51,475.
📈 Action Plan:
For long positions, wait for confirmation of a reversal above 51,232.
For short trades, consider entry below 51,232 with a target of 51,000.
📊 Trend Indicators:
Red: Bearish Move Expected.
Risk Management Tips for Options Trading:
Avoid over-leveraging in volatile market conditions.
Always maintain a risk-to-reward ratio of at least 1:2.
Use stop-loss orders based on 15-minute or hourly candle closes to prevent large losses.
Adjust position sizing to suit your risk appetite and market volatility.
Summary and Conclusion:
The key levels for Bank Nifty on 3-Jan-2025 are:
Resistance: 51,779-51,876 and 52,166-52,385.
Support: 51,475-51,571 and 51,232.
Understand the trend based on price action in these zones:
Green for bullish opportunities, Yellow for consolidation, and Red for bearish trends.
Trade cautiously and stick to the plan for optimal results.
Disclaimer:
This trading plan is for educational purposes only. I am not a SEBI-registered analyst. Please consult your financial advisor before making any trading decisions.
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.