BANKNIFTY : Trading Levels and Plan for 09-Jul-2024
On 08-Jul-2024, the NiftyBank Index exhibited a consolidation pattern with a slight bullish inclination towards the closing hours. Key levels were established, including a strong resistance zone around 53,521 and a significant support zone around 52,126. The market showed signs of indecision, indicating potential volatility for the upcoming session.
Trading Plan for 09-Jul-2024:
- Gap Up Opening (200+ points above 52,492):[tab][tab][tab]If the market opens above 52,692, observe the price action near the opening resistance at 52,859.
[tab][tab][tab]A rejection from this level could signal a shorting opportunity targeting 52,492, with a stop-loss above 52,900.
[tab][tab][tab]If the price sustains above 52,900, look for buying opportunities targeting the resistance for a new high at 53,049, with a stop-loss below 52,800.
[tab][tab][tab]In case of a strong bullish momentum, trailing stop-losses can be placed as the price approaches the profit booking zone at 53,521. - Flat Opening (near 52,492):[tab][tab][tab]Monitor the opening price action around 52,492.
[tab][tab][tab]If the price breaks below 52,470, look for shorting opportunities towards the buyers' support at 52,126, with a stop-loss above 52,520.
[tab][tab][tab]Conversely, if the price shows strength and moves above 52,520, consider long positions targeting the opening resistance at 52,859, with a stop-loss below 52,470. - Gap Down Opening (200+ points below 52,492):[tab][tab][tab]If the market opens below 52,292, closely watch the price action around the buyers' support at 52,126.
[tab][tab][tab]A bounce from this level can be used for long positions targeting 52,492, with a stop-loss below 52,030.
[tab][tab][tab]If the price fails to hold above 52,126 and moves towards 52,030, consider shorting opportunities towards the best buy zone at 51,681, with a stop-loss above 52,200.
Summary and Conclusion:
The Nifty Bank Index is poised for potential volatility on 09-Jul-2024, given the consolidation pattern observed on 08-Jul-2024. Key levels to watch include 52,859 on the upside and 52,126 on the downside. Trading opportunities exist for both bullish and bearish scenarios, with appropriate stop-losses to manage risk. Be prepared for quick market moves and adjust your strategy accordingly based on the price action at critical levels.
Disclaimer:
I am not a SEBI registered analyst. This analysis is for educational purposes only and should not be construed as trading advice. Always do your own research before making any trading decisions.
HAPPY TRADING
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