BANKNIFTY : Levels for 12-Sep-2024Trading Plan for 12th September 2024:
We will consider all scenarios for market opening with a gap of 200+ points. Follow the trading plan that matches the market’s opening behavior:
Gap Up Opening (+200 points or more):
If Bank Nifty opens above 51,300, it is essential to monitor the price action near the Resistance at BoS zone (51,601-51,705).
- Wait for the first 15-minute candle to close above 51,705 to confirm strength.
- If the market sustains above this level, initiate long positions with a target towards the profit booking zone at 51,981–52,086.
- Place a stop loss at 51,450 on a closing basis for risk management.
If Bank Nifty faces rejection at the 51,705 level, look for shorting opportunities targeting the "No Trade Zone" around 51,056. A reversal from the resistance area may indicate profit booking by institutions.
Flat Opening (within 200 points):
If Bank Nifty opens around 51,100-51,050, avoid trading within the "No Trade Zone" (51,056-50,892).
- Wait for a clear breakout above 51,300 or a breakdown below 50,892 to enter trades.
- For a breakout above 51,300, target 51,601 with a stop loss at 51,100.
- For a breakdown below 50,892, target the Buyer’s Support zone at 50,591 with a stop loss just above 50,950.
Gap Down Opening (-200 points or more):
If Bank Nifty opens below 50,892, pay attention to the Buyer’s Support zone at retracement (50,591).
- If the support holds, enter long positions with a target back towards 50,892-51,056.
- Place a stop loss at 50,550 on a closing basis.
If Bank Nifty breaks below 50,591, expect further downside towards the "Must Try Zone" near 50,131–49,990. Look for signs of reversal before initiating long positions in this zone, and set a tight stop loss below 50,000 for safety.
Risk Management Tips for Options Trading:
- Ensure proper position sizing by not risking more than 1-2% of your total capital on a single trade.
- For buying options, choose ATM strikes when expecting moderate moves, and OTM strikes only when anticipating strong directional movement.
- Use a trailing stop loss to safeguard profits, especially in high volatility options trading.
- Monitor time decay closely, especially if the market stays within the "No Trade Zone" for an extended period.
Summary and Conclusion:
For 12th September 2024, Bank Nifty is positioned near key resistance and support levels. A gap up may face resistance at the BoS zone, while a flat or gap down opening could test the lower support zones. It's crucial to follow price action around these levels before entering trades. Adopting a disciplined risk management approach is vital to handle intraday volatility, especially when trading options.
Disclaimer:
I am not a SEBI registered analyst. The analysis and trading plans shared are based on my own technical insights and personal experience. Please conduct your own research or consult with a certified financial advisor before making any trading decisions.
