WISH YOU ALL A VERY HAPPY NEW YEAR 2025
Introduction
In the previous trading session (1-Jan-2025), we identified critical levels, including the Golden Retracement Zones for buyers and sellers, along with significant support and resistance areas. The actual price action aligned closely with the outlined plan, particularly near the Opening Support/Resistance Zone at 51,096, where price consolidated (yellow trend) before making a move. Trends in the chart followed the predicted behavior: green trends indicated bullish moves, red trends reflected bearish momentum, and yellow zones suggested a sideways market.
Trading Plan for 2-Jan-2025
Gap-Up Opening (200+ points)
Flat Opening
Gap-Down Opening (200+ points)
Risk Management Tips for Options Trading
Summary and Conclusion
The trading plan for 2-Jan-2025 emphasizes a systematic approach based on observed levels and trends. Key areas to watch include 51,232, 51,096, 50,902, and 50,665. Use the outlined scenarios to adapt to the market's opening behavior. Green, yellow, and red trends provide clarity on expected bullish, sideways, and bearish movements, respectively. Adhering to proper risk management principles and executing trades with discipline will increase the likelihood of success.
Disclaimer: I am not a SEBI-registered analyst. This trading plan is for educational purposes only and should not be considered financial advice. Always conduct your own research and consult a professional financial advisor before making trading decisions.
Introduction
In the previous trading session (1-Jan-2025), we identified critical levels, including the Golden Retracement Zones for buyers and sellers, along with significant support and resistance areas. The actual price action aligned closely with the outlined plan, particularly near the Opening Support/Resistance Zone at 51,096, where price consolidated (yellow trend) before making a move. Trends in the chart followed the predicted behavior: green trends indicated bullish moves, red trends reflected bearish momentum, and yellow zones suggested a sideways market.
Trading Plan for 2-Jan-2025
Gap-Up Opening (200+ points)
- [] If Bank Nifty opens above 51,232 (Opening Resistance), monitor the first 15-minute candle for confirmation.
[] Sustaining above 51,232 may lead to a bullish move targeting the Golden Retracement Zone for Sellers at 51,659.
[] Profit booking is advised in the zone between 51,500–51,659, as this area could act as a strong resistance.
[] If price struggles to hold above 51,232, expect a pullback towards 51,096 (Opening Support/Resistance Zone). - Place a stop loss below 51,096 to manage risk and protect gains.
Flat Opening
- [] If Bank Nifty opens flat near 51,096, observe whether it breaks out above 51,232 or breaks down below 50,902 (Golden Retracement Zone for Buyers).
[] A breakout above 51,232 indicates bullish momentum towards 51,659. Follow the gap-up scenario for targets and stop loss placement.
[] A breakdown below 50,902 may result in bearish momentum, targeting 50,665 and eventually 50,235 (Buyer's Support).
[] Avoid trading within the Opening Support/Resistance Zone unless a clear breakout or breakdown occurs. - Wait for a confirmation candle to reduce the risk of false breakouts.
Gap-Down Opening (200+ points)
- [] If Bank Nifty opens below 50,902, observe the first 15-minute candle to determine whether the price sustains.
[] Sustaining below 50,902 may lead to a bearish move, targeting 50,665 and further towards 50,235 (Buyer's Support).
[] If the price bounces back above 50,902, anticipate a recovery towards 51,096. Monitor this zone for possible reversals or continuation.
[] Place a stop loss above 50,902 for short trades to manage risk effectively. - Avoid entering trades impulsively; let the levels guide your decisions.
Risk Management Tips for Options Trading
- [] Utilize stop losses to cap potential losses, especially in volatile markets.
[] Trade with a defined risk-reward ratio; aim for at least 1:2.
[] Avoid overtrading; focus on quality setups that align with the plan.
[] Consider theta decay when holding options overnight or during consolidation phases. - Diversify positions to mitigate single-direction risks and preserve capital.
Summary and Conclusion
The trading plan for 2-Jan-2025 emphasizes a systematic approach based on observed levels and trends. Key areas to watch include 51,232, 51,096, 50,902, and 50,665. Use the outlined scenarios to adapt to the market's opening behavior. Green, yellow, and red trends provide clarity on expected bullish, sideways, and bearish movements, respectively. Adhering to proper risk management principles and executing trades with discipline will increase the likelihood of success.
Disclaimer: I am not a SEBI-registered analyst. This trading plan is for educational purposes only and should not be considered financial advice. Always conduct your own research and consult a professional financial advisor before making 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.