BANKNIFTY : Trading Levels and Plan for 23-Dec-202423-Dec-2024 Bank Nifty Trading Plan
Color-Coding:
Yellow: Sideways trend. Green: Bullish trend. Red: Bearish trend.
23-Dec-2024 Trading Scenarios:
Gap Up Opening (+200 points or more):
If Bank Nifty opens above 51,272 but below 51,420 , this range acts as an immediate resistance zone. Watch for bearish rejection patterns like a double top or bearish engulfing to initiate short trades targeting 51,097-50,872 .
If prices sustain above 51,420 , the sentiment shifts bullish. Consider long trades above this level with targets of 51,832-52,000 . Use a stop loss at 51,250 to manage risk effectively.
Flat Opening:
A flat opening near 50,872-50,664 suggests consolidation. Wait for a breakout above 51,097 for long trades targeting 51,272-51,420 .
Alternatively, a breakdown below 50,664 may trigger bearish momentum. Short trades can be initiated below this level, targeting 50,069-49,800 . Use hourly candle closes to confirm breakdown or breakout for improved accuracy.
Gap Down Opening (-200 points or more):
A gap down below 50,664 puts immediate focus on 50,069 as a critical support level. Look for bullish reversal patterns (e.g., hammer or morning star) within this zone to initiate long trades targeting 50,664-50,872 .
If prices fail to hold 50,069 , expect extended bearish pressure, with short trade targets at 49,800-49,500 . Maintain a stop loss at 50,150 to protect capital.
Risk Management Tips for Options Trading:
Prefer buying options in volatile markets instead of selling to limit risk.
Use spreads (e.g., bull call spreads or bear put spreads) for defined risk-reward.
Monitor implied volatility (IV) levels; higher IV suggests premium decay risk for sellers.
Cap exposure to a fixed percentage of your trading capital per trade.
Summary & Conclusion:
Bank Nifty’s movement on 23-Dec-2024 will revolve around critical zones, especially 51,097-51,272 and 50,664-50,069 . Respect these levels and wait for confirmations before initiating trades. Effective risk management and disciplined execution are key to navigating volatile markets.
Disclaimer:
I am not a SEBI-registered analyst. This analysis is for educational purposes only. Please consult your financial advisor before making trading decisions.
