BANKNIFTY : Trading Plan for 06-Dec-2024Trading Plan for Bank Nifty – 06-Dec-2024
Intro to the Previous Day's Chart Pattern:
On 05-Dec-2024, Bank Nifty displayed a remarkable journey, testing critical levels and forming significant zones.
Profit Booking Zone (₹54,472–₹54,787): Wave C extended zone acted as a stiff resistance.
No-Trade Zone (₹53,396–₹53,702): Represented indecision near Wave C completion, where the trend remained unclear ( Yellow Trend ).
Opening Support Zone (₹53,067): Held well to initiate bullish recoveries ( Green Trend ).
Deep Retracement Zone (₹52,400–₹52,600): Marked by Fibonacci levels (113%-127%), offering a strong demand area ( Green Trend ).
The day concluded with a consolidation between critical zones, setting the stage for decisive moves on 06-Dec-2024.
Trading Plan for 06-Dec-2024
Gap Up Opening (+200 Points):
If Bank Nifty opens near or above ₹54,000 , expect resistance at the Profit Booking Zone (₹54,472–₹54,787) .
Action Plan:
Watch for rejection or bearish patterns near ₹54,472 . Short positions can be initiated with targets of ₹54,000 and ₹53,702 .
Sustained breakout above ₹54,787 with strong volumes signals continuation of the bullish rally. Long trades can target ₹55,200 and ₹55,450 .
Risk Management Tip:
Use tight stop-loss for short trades above ₹54,787 . In options, consider selling OTM calls above ₹55,000 for time decay advantages.
Flat Opening (Near ₹53,600):
A flat opening near the No-Trade Zone (₹53,396–₹53,702) demands caution.
Action Plan:
If Bank Nifty sustains above ₹53,702 , initiate long positions targeting ₹54,472 .
Below ₹53,396 , expect a dip toward the Opening Support Zone (₹53,067) . Look for buying opportunities with bullish signals at this level.
Risk Management Tip:
Avoid aggressive trades in the No-Trade Zone. Wait for a clear breakout or breakdown before entering trades. For options, use spreads like bull call spreads to minimize risks.
Gap Down Opening (-200 Points):
A gap-down opening near ₹53,067 or below will test critical supports.
Action Plan:
If Bank Nifty stabilizes above ₹53,067 , expect a recovery toward ₹53,396 . Long trades can be initiated with proper risk-reward setups.
Failure to hold ₹53,067 opens the door to the Deep Retracement Zone (₹52,400–₹52,600) , where buying opportunities may arise for targets of ₹53,067 and ₹53,396 .
Risk Management Tip:
For high volatility scenarios, trade lighter positions. Use option strategies like straddles or strangles to capitalize on premium spikes.
Summary and Conclusion:
Resistance Levels: ₹54,472, ₹54,787
Support Levels: ₹53,702, ₹53,067, ₹52,400
Key Levels to Watch: Rejection at ₹54,472 or breakdown below ₹53,067 will determine intraday momentum.
Follow the trends: Yellow (Sideways), Green (Bullish), Red (Bearish) .
Tips for Options Trading:
Use proper hedging strategies like spreads to limit losses.
Avoid over-leveraging in volatile conditions.
Disclaimer:
The above analysis is for educational purposes only . I am not a SEBI-registered analyst. Please perform your research or consult a financial advisor before trading. Market risks are significant; trade responsibly.
