Nifty Bank Index

Long

BANKNIFTY : Trading Plan for 18-Feb-2025

🔹 Key Levels to Watch
Opening Resistance / Support Zone: 49,435 - 49,332
Last Intraday Resistance: 49,676 - 49,802
Opening Support Zone: 48,920 - 48,993
Last Intraday Support: 48,696
🟢 Scenario 1: Gap-Up Opening (200+ Points Above Previous Close)
If BANKNIFTY opens above 49,435, it enters a crucial resistance zone.

A rejection from 49,676 - 49,802 may lead to a shorting opportunity with targets at 49,435 - 49,332.
If price sustains above 49,802, expect a breakout move towards 49,997, with momentum building.
Safe traders should wait for retests at support levels before entering trades.
📌 Plan of Action:
🔹 Look for bearish rejection signals at resistance for a short trade.
🔹 If the price breaks out with volume, go long with a stop-loss below 49,676.

⚖ Scenario 2: Flat Opening (Within 100 Points of Previous Close)
If BANKNIFTY opens around 49,279 - 49,228, we are in a neutral zone.
1. Holding above 49,332 could push price towards 49,676.
  A break below 49,228 could trigger selling towards 48,993.
  Avoid trades in choppy price action; wait for confirmation.
  📌 Plan of Action:
  🔹 Wait for price confirmation at 49,332 before taking positions.
  🔹 Trade only after a clear trend is established.
  
  🔴 Scenario 3: Gap-Down Opening (200+ Points Below Previous Close)
  If BANKNIFTY opens near or below 48,920, it enters a support zone.
  1. Holding 48,920 - 48,696 can lead to a bounce back to 49,228 - 49,332.
    Breaking below 48,696 could see strong selling pressure towards lower levels.
    📌 Plan of Action:
    🔹 Look for bullish price action at support for long trades.
    🔹 If price sustains below 48,696, consider shorting with a stop-loss above the resistance zone.
    
    ⚠️ Risk Management Tips for Options Trading
    ✅ Position Sizing: Trade with small lot sizes in volatile conditions.
    ✅ Stop-Loss Discipline: Always set SL and stick to it!
    ✅ Avoid Overtrading: Enter only on confirmed setups.
    ✅ Time Decay Awareness: Avoid holding options overnight unless confident about direction.
    
    📌 Summary & Conclusion
    Bullish Bias above 49,435, targeting 49,676 - 49,997.
    Bearish Breakdown below 48,920, targeting 48,696 - 48,500.
    Flat Openings require confirmation before entering trades.
    
    🚨 Disclaimer: I am not a SEBI-registered analyst. This analysis is for educational purposes only. Trade at your own risk.

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Also on:

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.