BANKNIFTY : Trading levels and Plan for 03-Jan-2024Intro: 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.
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.
