Bank Nifty Trading Plan for 22nd October 2024
In the previous session, Bank Nifty traded within a range after facing strong resistance around the 52,216 level. The index remained choppy, testing support near 51,722 but failed to break out of the broader consolidation. As the market prepares for the next trading session, critical levels for breakout or breakdown will determine the direction of movement, particularly around the resistance and support zones marked in the chart.
Gap-Up Opening (200+ Points):
In the previous session, Bank Nifty traded within a range after facing strong resistance around the 52,216 level. The index remained choppy, testing support near 51,722 but failed to break out of the broader consolidation. As the market prepares for the next trading session, critical levels for breakout or breakdown will determine the direction of movement, particularly around the resistance and support zones marked in the chart.
Gap-Up Opening (200+ Points):
- If Bank Nifty opens with a gap-up above 52,216, traders should wait for a sustained breakout above this level to confirm upside momentum.
- Long positions can be initiated above 52,216 with targets towards 52,423, which is the last strong intraday resistance.
- Once 52,423 is crossed, the next target could be 52,836, but watch for signs of exhaustion near this level.
- Place a stop-loss just below 52,216 to protect your position in case of a reversal.
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Flat Opening:- In the case of a flat opening near the current price of 51,857, observe how the price behaves around the 51,722-51,655 support/resistance zone.
- A breakout above 51,722 could provide a buying opportunity, with upside targets at 52,216 and 52,423.
- A failure to hold 51,722 may lead to a downside move towards the next support zone around 51,468.
- Stop-loss for long trades should be placed below 51,655, and for short trades, the stop-loss can be kept just above 51,722.
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Gap-Down Opening (200+ Points):- If Bank Nifty opens with a gap-down below 51,468, traders should monitor price action closely as it approaches the "Must Try Zone for Buyers" between 51,468 and 51,336.
- If buyers step in near 51,336 and defend this level, long positions can be considered, but only after confirming a reversal.
- In case the 51,336 level breaks, the next downside target is 50,803, and any further weakness could accelerate the selling pressure.
- Keep a stop-loss below 51,336 for long trades, while for short trades initiated at higher levels, the stop-loss can be placed above 51,468.
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Risk Management Tips for Options Trading:- Avoid naked options trades in highly volatile scenarios. Use spreads or combination strategies like iron condors to limit risk.
- Monitor Bank Nifty’s movement closely near key levels, especially in the 51,722 and 52,216 zones, where premiums can erode quickly due to time decay.
- Book profits quickly in options, especially near key resistance levels like 52,423, as sharp reversals are common at such levels.
- Ensure proper position sizing and do not over-leverage. Always keep a clear stop-loss in mind based on the levels mentioned above.
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Summary & Conclusion:
For 22nd October 2024, Bank Nifty’s key levels are 52,216 on the upside and 51,468 on the downside. A gap-up opening above 52,216 can lead to a test of 52,423, while a gap-down opening below 51,468 could take the index towards the 51,336-50,803 support zones. Flat openings should be traded cautiously, especially around the 51,722 level, which could act as both support and resistance depending on price action. Always use proper risk management strategies when trading options, and avoid trading in uncertain zones without clear breakouts or breakdowns.
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Disclaimer: I am not a SEBI registered analyst. This plan is based on my personal analysis using technical parameters. Traders are advised to conduct their own research or consult with a financial advisor before making any trading decisions.
- Avoid naked options trades in highly volatile scenarios. Use spreads or combination strategies like iron condors to limit risk.
- If Bank Nifty opens with a gap-down below 51,468, traders should monitor price action closely as it approaches the "Must Try Zone for Buyers" between 51,468 and 51,336.
- In the case of a flat opening near the current price of 51,857, observe how the price behaves around the 51,722-51,655 support/resistance zone.
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.