Trading Plan for 26-Dec-2024 – Bank Nifty
Introduction:
The trading plan for 23-Dec-2024 highlighted critical zones, with Yellow indicating sideways trends, Green showing bullish trends, and Red indicating bearish trends. Bank Nifty respected these levels, testing the Opening Resistance/Support Zone but displaying indecision. Price stabilization near support zones provided opportunities for both bullish and bearish trades. Below is the detailed trading plan for 26-Dec-2024 based on potential opening scenarios.
If Bank Nifty opens above 51,593:
The Last Intraday Resistance Zone (51,719-51,962) becomes crucial. Watch for rejection signals here. A failure to sustain above this zone could trigger a bearish reversal (Red Trend).
Action Plan: Short positions can be initiated with a target toward 51,420, keeping a stop-loss above 52,000.
If prices sustain above 51,962, expect a strong bullish trend (Green Trend) toward higher levels.
Action Plan: Options traders can consider buying ATM or slightly OTM Call options after confirming an hourly close above resistance.
If Bank Nifty opens within the range of 51,420-51,593:
This zone is likely to act as a supply zone. Monitor price action for rejection or breakout signs. A rejection may indicate consolidation (Yellow Trend) or bearishness.
Action Plan: Trade cautiously with tight stop-losses and wait for clear direction before taking any trades.
If Bank Nifty opens near 51,288 (Liquidity Build-up Zone):
Observe price action in the first 15-30 minutes. If the index moves toward 51,420, wait for either rejection or breakout confirmation.
Action Plan: A breakout with volume can lead to bullish momentum toward 51,593.
If prices decline toward the Opening Support Zone (51,073), anticipate either a consolidation phase (Yellow Trend) or a potential bounce (Green Trend).
Action Plan: Consider long positions above 51,073, targeting 51,288.
If Bank Nifty opens near 51,010-51,073:
This is a key support zone. Look for potential bounce signals (Green Trend).
Action Plan: If prices sustain, options traders can initiate long positions in ATM Call options, targeting 51,288.
If prices break and sustain below 51,010, bearish momentum (Red Trend) is expected toward the Last Intraday Support (50,781).
If Bank Nifty opens near 50,781 or below:
This represents the Last Intraday Support Zone. Look for reversal signals before entering long trades.
Action Plan: If this support is decisively broken, expect further bearishness. Avoid aggressive trades and wait for confirmation.
Risk Management Tips for Options Trading:
Always trade with defined targets and stop-losses.
Avoid over-leveraging, especially near resistance and support zones.
For gap-up or gap-down openings, allow the market to settle for at least 15-30 minutes before making trades.
Use trailing stop-losses to protect profits in trending moves.
Summary and Conclusion:
Bank Nifty is trading within defined ranges, and the outlined levels will guide trades based on the opening scenario. Focus on the Opening Support and Resistance Zones for actionable trades. Execute trades with patience, discipline, and proper risk management.
Disclaimer:
I am not a SEBI-registered analyst. This trading plan is shared purely for educational purposes. Traders are advised to conduct their own research or consult a financial advisor before taking any positions.
Introduction:
The trading plan for 23-Dec-2024 highlighted critical zones, with Yellow indicating sideways trends, Green showing bullish trends, and Red indicating bearish trends. Bank Nifty respected these levels, testing the Opening Resistance/Support Zone but displaying indecision. Price stabilization near support zones provided opportunities for both bullish and bearish trades. Below is the detailed trading plan for 26-Dec-2024 based on potential opening scenarios.
- Scenario 1: Gap-Up Opening (200+ Points)
If Bank Nifty opens above 51,593:
The Last Intraday Resistance Zone (51,719-51,962) becomes crucial. Watch for rejection signals here. A failure to sustain above this zone could trigger a bearish reversal (Red Trend).
Action Plan: Short positions can be initiated with a target toward 51,420, keeping a stop-loss above 52,000.
If prices sustain above 51,962, expect a strong bullish trend (Green Trend) toward higher levels.
Action Plan: Options traders can consider buying ATM or slightly OTM Call options after confirming an hourly close above resistance.
If Bank Nifty opens within the range of 51,420-51,593:
This zone is likely to act as a supply zone. Monitor price action for rejection or breakout signs. A rejection may indicate consolidation (Yellow Trend) or bearishness.
Action Plan: Trade cautiously with tight stop-losses and wait for clear direction before taking any trades.
- Scenario 2: Flat Opening (Within 50 Points)
If Bank Nifty opens near 51,288 (Liquidity Build-up Zone):
Observe price action in the first 15-30 minutes. If the index moves toward 51,420, wait for either rejection or breakout confirmation.
Action Plan: A breakout with volume can lead to bullish momentum toward 51,593.
If prices decline toward the Opening Support Zone (51,073), anticipate either a consolidation phase (Yellow Trend) or a potential bounce (Green Trend).
Action Plan: Consider long positions above 51,073, targeting 51,288.
- Scenario 3: Gap-Down Opening (200+ Points)
If Bank Nifty opens near 51,010-51,073:
This is a key support zone. Look for potential bounce signals (Green Trend).
Action Plan: If prices sustain, options traders can initiate long positions in ATM Call options, targeting 51,288.
If prices break and sustain below 51,010, bearish momentum (Red Trend) is expected toward the Last Intraday Support (50,781).
If Bank Nifty opens near 50,781 or below:
This represents the Last Intraday Support Zone. Look for reversal signals before entering long trades.
Action Plan: If this support is decisively broken, expect further bearishness. Avoid aggressive trades and wait for confirmation.
Risk Management Tips for Options Trading:
Always trade with defined targets and stop-losses.
Avoid over-leveraging, especially near resistance and support zones.
For gap-up or gap-down openings, allow the market to settle for at least 15-30 minutes before making trades.
Use trailing stop-losses to protect profits in trending moves.
Summary and Conclusion:
Bank Nifty is trading within defined ranges, and the outlined levels will guide trades based on the opening scenario. Focus on the Opening Support and Resistance Zones for actionable trades. Execute trades with patience, discipline, and proper risk management.
Disclaimer:
I am not a SEBI-registered analyst. This trading plan is shared purely for educational purposes. Traders are advised to conduct their own research or consult a financial advisor before taking any positions.
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.