BANKNIFTY : Trading Levels and Plan for 05-Nov-2024On 04-Nov-2024, Bank Nifty showed a bearish action with the first tick of opening, closing near **51,227** with noticeable volatility. The chart reflects clear support near **50,829** and **50,704**, while resistance zones are seen at **51,494** and **51,729**. The **Yellow trend** represents a sideways market, the **Green trend** signals bullish momentum, and the **Red trend** indicates bearish moves.
Trading Plan for 05-Nov-2024:
Gap Up Opening (200+ points):
If Bank Nifty opens with a gap-up above **51,494**, the index will likely face intraday resistance at **51,729**. A breakout above this level can push Bank Nifty towards **52,082**, the next key resistance level, which might induce sideways movement.
However, failure to sustain above **51,729** could result in a pullback towards **51,494** or even a retest of **51,366**, the opening support/resistance level.
Actionable Plan:
- **Buy** on a sustained move above **51,729** with a target of **52,082**.
- **Stop Loss:** Below **51,494** on a 15-minute candle close.
Flat Opening:
If Bank Nifty opens flat near **51,227**, the focus will be on price action around the **51,366** level. A breakout above **51,494** could initiate bullish momentum, while a failure to break this resistance will result in a sideways trend (Yellow trend) with a potential retest of **51,009** (opening support).
In case Bank Nifty breaks **51,009**, expect a bearish move towards **50,829** and **50,704**.
Actionable Plan:
- **Buy** on a breakout above **51,366**, targeting **51,494**.
- **Sell** below **51,009**, with a target of **50,829**.
- **Stop Loss:** Place a stop loss near **51,227** for both buy and sell strategies.
Gap Down Opening (200+ points):
If Bank Nifty opens with a gap-down around **50,829** or below, the focus shifts to the **Buyer’s Support Zone** around **50,704**. A strong recovery from this zone could lead to a bounce back towards **51,009** or even higher.
However, if the index fails to hold **50,704**, expect further downside pressure, with the next major support at **50,105**. Keep in mind that aggressive selling could lead to a bearish continuation (Red trend).
Actionable Plan:
- **Buy** near **50,704**, with a target of **51,009**.
- **Sell** below **50,704**, aiming for **50,105**.
- **Stop Loss:** Below **50,704** on a 15-minute candle close.
Risk Management Tips for Options Trading:
- Consider using spreads to limit risk while taking advantage of directional moves.
- Keep positions light during volatile openings and focus on defined support/resistance levels.
- Avoid holding short-term options over the weekend unless there’s a clear directional bias.
Summary and Conclusion:
Key levels to watch for 05-Nov-2024 include **51,494** as intraday resistance and **50,704** as strong support. A gap-up or flat opening presents potential opportunities for bullish trades above **51,366**, while a gap-down opening could provide buy opportunities near **50,704**. As always, respect support/resistance zones and wait for confirmation before entering positions.
Disclaimer: I am not a SEBI-registered analyst. This trading plan is based on technical analysis and should not be considered financial advice. Please consult with your financial advisor before making any trading decisions.
