BANKNIFTY - Trading plan and levels for 05-Feb-2025📌 Bank Nifty Trading Plan – 05-Feb-2025
📊 Market Overview & Key Levels
Previous Close: 50,111.65
Resistance for Sideways: 50,310-50,374
Profit Booking Zone: 50,970
Opening Support / Resistance Zone: 50,147-50,310
Opening Support: 49,875-49,866
Last Intraday Support: 49,550
📈 Opening Scenarios & Trading Plan
🟢 Scenario 1: Gap-Up Opening (📈 200+ points)
If Bank Nifty opens above 50,310-50,374, it enters a resistance zone.
A strong hourly close above 50,374 can trigger a bullish move toward 50,600-50,970.
However, if prices struggle to hold above this zone, expect a pullback towards 50,147-50,310 before further movement.
📌 Trading Plan:
Wait for price confirmation near 50,374 before going long.
A rejection from resistance (candlestick reversal patterns like shooting star or bearish engulfing) could trigger a short trade toward 50,147.
Stop loss should be placed above 50,400 for shorts and below 50,250 for longs.
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🟠 Scenario 2: Flat Opening (📊 ±100 points from previous close)
If Bank Nifty opens within 50,100-50,200, expect range-bound movement in the first 30 minutes.
A breakout above 50,310 confirms a bullish trend, while a breakdown below 50,100 indicates weakness.
📌 Trading Plan:
For a breakout above 50,310, enter longs with a target of 50,600-50,970.
For a breakdown below 50,100, short with a target of 49,866-49,550.
Wait for confirmation on 15-min candle close before entering trades.
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🔴 Scenario 3: Gap-Down Opening (📉 200+ points)
If Bank Nifty opens below 49,875, it enters a strong support zone.
A further breakdown below 49,550 can accelerate selling pressure toward 49,300-49,200.
📌 Trading Plan:
If price stabilizes above 49,866, consider a bounce trade for quick scalping toward 50,100.
A break below 49,550 confirms further weakness – enter shorts targeting 49,300.
Keep SL above 49,950 for shorts and below 49,500 for longs.
📌 Risk Management Tips for Options Trading 🎯
✅ Use Stop Losses Based on Hourly Close: Avoid emotional exits, always base SL decisions on market structure.
✅ Avoid Trading in No-Trend Zones: If price is stuck in the 50,147-50,310 range, wait for a breakout confirmation.
✅ For Option Buyers: IV crush can affect premiums, prefer ATM/ITM options for better movement.
✅ For Option Sellers: Use hedging strategies like spreads to limit risk.
📊 Summary & Conclusion
Bullish Confirmation: Above 50,374, targeting 50,600-50,970.
Bearish Confirmation: Below 49,875, with potential downside toward 49,550-49,300.
Sideways Range: Between 50,147-50,310, avoid unnecessary trades.
Watch Price Action for Breakouts & Rejections before entering trades.
📢 Disclaimer
I am not a SEBI-registered analyst. This analysis is for educational purposes only. Please conduct your own research or consult with a financial advisor before making any trading decisions.
