BANKNIFTY : Trading Levels and Plan for 04-Nov-2024Intro for Previous Day's Chart Pattern:
In the last two trading session, Bank Nifty displayed a mixed trend with a bounce off the support levels, suggesting buying interest from lower zones. Key resistance levels emerged near the higher range, where sellers maintained pressure. As per the chart, Yellow indicates a potential Sideways trend, Green shows a Bullish trend, and Red highlights a Bearish trend.
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Trading Plan for 04-Nov-2024:
Opening Scenarios:
Gap Up Opening (200+ points):
If Bank Nifty opens with a significant gap up around 52,191 or higher:
- Watch for resistance near 52,191 (marked as “Last Resistance for Intraday”). A strong breakout above this level may provide momentum for further upside.
- If the price holds above 52,129, consider initiating long positions, but be cautious of quick pullbacks near 52,483, the higher resistance zone.
- If resistance holds, wait for confirmation before shorting, as the price may consolidate or pull back slightly to retest lower support levels.
Flat Opening:
If Bank Nifty opens flat around 51,675:
- Focus on the immediate resistance level of 51,834. A decisive break above this level can push prices toward the 52,000+ range.
- If prices struggle to breach 51,834, consider waiting for a dip towards 51,480, which is the “Opening Support for Buyers,” to enter long positions.
- For intraday shorts, wait for bearish confirmation near 51,834 before targeting lower levels, particularly if the price heads toward the 51,366 support area.
Gap Down Opening (200+ points):
If Bank Nifty opens with a gap down near 51,366 or lower:
- Observe the support zone around 51,366 and 51,008. If the price stabilizes in this range, it could be a good entry for long trades with a target towards 51,604.
- If 51,008 (Last Intraday Support) is breached, further downside could follow, potentially dragging the index down to the 50,831 level.
- Look for confirmation of strength or weakness before entering positions, as gap-down openings may lead to volatile price action.
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Risk Management Tips for Options Trading:
- Use tight stop-losses in the volatile market conditions post-Diwali to avoid sharp losses.
- Avoid over-leveraging. Consider position sizing that aligns with your risk tolerance, especially near key support and resistance levels.
- Monitor option premiums closely, as high volatility can lead to rapid premium decay.
- In case of significant volatility, consider exiting options positions early to preserve gains or limit losses.
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Summary and Conclusion:
The 04-Nov-2024 session holds potential for a continuation of recent trends, with key resistance and support levels in focus. Look for clear breakouts above resistance or signs of support holding to confirm directional bias. Sideways movement within key zones may indicate consolidation, while breaks beyond these zones may drive a more directional move.
Disclaimer: I am not a SEBI-registered analyst. This trading plan is shared for educational purposes. Please conduct your analysis or consult a financial advisor before making any trading decisions.
