Bank Nifty Trading Plan for 6-Jan-2025
Let’s analyze the updated trading plan for 6-Jan-2025, with scenarios for Gap Up, Flat, and Gap Down openings.
Trading Plan for 6-Jan-2025
Let’s analyze the updated trading plan for 6-Jan-2025, with scenarios for Gap Up, Flat, and Gap Down openings.
Trading Plan for 6-Jan-2025
- Gap-Up Opening (200+ Points Above 51,076):
If Bank Nifty opens with a significant gap-up:
Immediate focus will be on the Resistance Zone at 51,290-51,232.
Bullish Scenario: A sustained breakout above 51,290 for 15 minutes can lead to a move toward 51,590 (Last Resistance for Intraday) and potentially 51,880. Enter long trades with a stop-loss below 51,290.
Sideways Trend: If price struggles near 51,290, expect a sideways movement as shown in Yellow. This is a no-trade zone unless there’s a breakout or breakdown. Avoid overtrading here.
Bearish Reversal Risk: If prices fail to hold above 51,076, expect a pullback to 50,974 or lower levels. - Flat Opening (Near 50,974):
If Bank Nifty opens flat:
The key Opening Support Zone lies at 50,737-50,817.
Bullish Scenario: Sustained buying above 51,076 could drive prices toward 51,290. Look for price action confirmation before entering long trades.
Bearish Breakdown: If prices fall below 50,737, expect a move toward 50,380. Enter short positions only after confirmation with a stop-loss above 50,737.
No-Trade Zone: Avoid trading within the 50,737-51,076 range unless there’s clear directional momentum. - Gap-Down Opening (200+ Points Below 50,737):
If Bank Nifty opens with a significant gap-down:
Immediate focus will be on the First Support Zone at 50,380.
Bearish Scenario: If prices fail to hold 50,380, a sharp decline toward 50,000 (psychological level) is possible.
Bullish Recovery Opportunity: If prices quickly reclaim 50,737, go long with targets at 51,076. Maintain a tight stop-loss below 50,737.
Risk Mitigation: Avoid aggressive trades during the first 15 minutes and wait for clear trend confirmation.
Risk Management Tips for Options Traders:
Use hedging strategies like Bull Call Spreads or Bear Put Spreads to limit potential losses.
Stick to smaller lot sizes during high volatility to manage risk better.
Avoid over-leveraging and always trade with defined stop-losses.
Monitor implied volatility (IV) levels to gauge option premium fluctuations.
Summary and Conclusion:
The Resistance Zone at 51,290-51,232 remains critical for bullish continuation, while the Support Zones at 50,737 and 50,380 will dictate bearish or recovery scenarios. Follow the Yellow (Sideways), Green (Bullish), and Red (Bearish) trends to stay aligned with the market movement. Prioritize disciplined trading and sound risk management to maximize returns.
Disclaimer: I am not a SEBI-registered analyst. This trading plan is for educational purposes only. Traders are advised to conduct their analysis or consult a financial advisor before executing any trades.
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.