Bank Nifty Trading Plan for 15-Oct-2024
Previous Day's Chart Pattern Recap
On 14th October, Bank Nifty experienced a bullish breakout, pushing above the key resistance at 51,807 and testing the "Opening Resistance for Sideways" zone near 51,948. The index managed to stay above the 51,807 level, signaling potential further upside momentum. However, the profit booking zone near 52,384 - 52,540 could act as a strong barrier for further gains. The key will be whether Bank Nifty sustains above the 51,948 level at the open.
Opening Scenarios
Risk Management Tips for Options Traders:
- In volatile scenarios like gap-ups or gap-downs, options premiums can rise quickly. Use options spreads to limit risk while capturing the upside or downside.
- Avoid buying options with inflated premiums after a gap open; instead, wait for a retracement or lower volatility.
- Keep position sizes small in volatile conditions and be prepared for quick market reversals.
Summary and Conclusion:
Bank Nifty is currently trading above its key support of 51,807, with the next upside targets being 52,384 and 52,540. However, failure to hold above 51,807 could lead to a downside move towards 51,534 and 51,448. Traders should wait for the first 30 minutes of the market to settle before making decisive entries, especially in options trades.
Disclaimer:
I am not a SEBI registered analyst. All trading ideas shared are for educational purposes. Please conduct your own analysis or consult a financial advisor before executing any trades.
Previous Day's Chart Pattern Recap
On 14th October, Bank Nifty experienced a bullish breakout, pushing above the key resistance at 51,807 and testing the "Opening Resistance for Sideways" zone near 51,948. The index managed to stay above the 51,807 level, signaling potential further upside momentum. However, the profit booking zone near 52,384 - 52,540 could act as a strong barrier for further gains. The key will be whether Bank Nifty sustains above the 51,948 level at the open.
Opening Scenarios
- Gap Up Opening (+200 points or more):
In the case of a gap-up above 51,948, Bank Nifty is likely to test the "Profit Booking Zone" between 52,384 and 52,540. If prices sustain above 52,384, there could be further upside; however, profit booking might lead to a pullback from these levels.
Trade Setup:
- Buy above 51,948 with a stop loss below 51,807.
- Targets: 52,384 and 52,540.
- Look for reversal signals around 52,384 for potential shorts with targets back towards 51,948. - Flat Opening:
A flat opening near 51,807 suggests that Bank Nifty could initially consolidate around this level. If it breaks below 51,807, there may be a short-term decline towards the intraday support of 51,534. If it holds, look for a continuation towards the higher resistance levels.
Trade Setup:
- Buy above 51,807 with targets of 51,948 and 52,384.
- Short below 51,807 with targets of 51,534 and 51,448.
- Wait for clear direction and momentum in the first 30 minutes of trading before making any decisions. - Gap Down Opening (-200 points or more):
A gap-down opening below 51,534 would bring the intraday support into play. If this level breaks, Bank Nifty could slide further towards the "Last Intraday Support" zone near 51,198.
Trade Setup:
- Buy near 51,534 with targets of 51,807 and 51,948.
- Short below 51,534 targeting 51,448 and 51,198.
- Gap-down scenarios often come with high volatility, so be cautious and use stop-losses diligently.
Risk Management Tips for Options Traders:
- In volatile scenarios like gap-ups or gap-downs, options premiums can rise quickly. Use options spreads to limit risk while capturing the upside or downside.
- Avoid buying options with inflated premiums after a gap open; instead, wait for a retracement or lower volatility.
- Keep position sizes small in volatile conditions and be prepared for quick market reversals.
Summary and Conclusion:
Bank Nifty is currently trading above its key support of 51,807, with the next upside targets being 52,384 and 52,540. However, failure to hold above 51,807 could lead to a downside move towards 51,534 and 51,448. Traders should wait for the first 30 minutes of the market to settle before making decisive entries, especially in options trades.
Disclaimer:
I am not a SEBI registered analyst. All trading ideas shared are for educational purposes. Please conduct your own analysis or consult a financial advisor before executing any trades.
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.