Introduction:
In the previous session on 24th October 2024, Bank Nifty displayed volatile price action, attempting to recover from its intraday low. Key support levels, such as 51,385, held the index from further downside, while resistance near 51,840 remained unbroken. A clear directional move is awaited as the index shows signs of potential retracement and consolidation around the crucial support zones. With 25th October 2024 being an important trading day, we’ll analyze possible market openings and provide a structured trading plan for each scenario.
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Trading Plan for 25th October 2024:
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Risk Management Tips for Options Trading:
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Summary & Conclusion:
For the session on 25th October 2024, Bank Nifty will likely face critical tests at the 51,840 and 51,247 levels, with either leading to key moves depending on market reaction. Traders should remain cautious during gap scenarios and wait for confirmation from price action to avoid getting trapped in volatile movements. Keeping risk management at the forefront, particularly in options trading, will be essential to navigate the day successfully.
Disclaimer:
I am not a SEBI-registered analyst. The levels and strategies provided here are based on personal analysis and should not be considered as financial advice. Please do your own research or consult a financial advisor before making trading decisions.
In the previous session on 24th October 2024, Bank Nifty displayed volatile price action, attempting to recover from its intraday low. Key support levels, such as 51,385, held the index from further downside, while resistance near 51,840 remained unbroken. A clear directional move is awaited as the index shows signs of potential retracement and consolidation around the crucial support zones. With 25th October 2024 being an important trading day, we’ll analyze possible market openings and provide a structured trading plan for each scenario.
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Trading Plan for 25th October 2024:
- Gap Up Opening (200+ points):
If Bank Nifty opens with a gap up above 51,700:
⠀⠀- Watch for price action near the Resistance for Trend Reversal at 51,840. A reversal could happen at this level, so wait for confirmation before considering short trades.
⠀⠀- If Bank Nifty breaks above 52,260, it could lead to an upward trend extension. However, caution is advised, as profit booking is expected around this zone.
⠀⠀- Expect retracement back to the Opening Support level of 51,446 if the price fails to hold above 51,840.
⠀⠀- Look for selling opportunities near resistance, with a target towards 51,385, ensuring proper stop losses to manage risk. - Flat Opening:
If Bank Nifty opens around the previous close (51,565):
⠀⠀- The initial move should be towards the Opening Support / Resistance at 51,446. Watch for either a bounce or breakdown from this level to determine the market direction.
⠀⠀- A breakdown below 51,446 could send Bank Nifty towards the Buyer's Support at Retracement near 51,247.
⠀⠀- Upside potential remains intact if 51,446 holds. The immediate target on the upside will be 51,840. If this level is broken, watch for the 52,260 zone to act as the final resistance before a trend reversal.
⠀⠀- For flat openings, entering with small position sizes and using trailing stop losses can help capture potential swings. - Gap Down Opening (200+ points):
If Bank Nifty opens with a gap down near or below 51,300:
⠀⠀- The key level to watch will be the Buyer's Support at Retracement at 51,247. If this support holds, expect a quick bounce back to 51,446.
⠀⠀- A breach of 51,247 will expose Bank Nifty to further downside risk, targeting the Support for Sideways zone near 50,864 and potentially 50,701.
⠀⠀- Keep tight stop losses if trading during a gap-down scenario, as the volatility may trigger sharp moves. Wait for consolidation or clear price action before entering long positions, especially if support levels break.
⠀⠀- Short trades could be initiated if price sustains below 51,247, with a downside target towards 50,864.
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Risk Management Tips for Options Trading:
- Focus on spread strategies, such as Iron Condors or Butterfly spreads, to manage volatility and risk in uncertain market conditions.
- Use tight stop losses when trading naked options, especially during gap scenarios, as premiums can spike quickly, leading to large losses if positions are left unmanaged.
- Avoid aggressive entries immediately after large gap openings. Let the market stabilize for the first 30 minutes before executing trades.
- For positional traders, look for opportunities to buy options closer to support and sell near resistance to maximize risk/reward potential.
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Summary & Conclusion:
For the session on 25th October 2024, Bank Nifty will likely face critical tests at the 51,840 and 51,247 levels, with either leading to key moves depending on market reaction. Traders should remain cautious during gap scenarios and wait for confirmation from price action to avoid getting trapped in volatile movements. Keeping risk management at the forefront, particularly in options trading, will be essential to navigate the day successfully.
Disclaimer:
I am not a SEBI-registered analyst. The levels and strategies provided here are based on personal analysis and should not be considered as financial advice. Please do your own research or consult a financial advisor before making trading decisions.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.