BANKNIFTY : Trading plan and Levels for 11-Dec-2024Previous Day's Chart Pattern Analysis:
The chart for 10-Dec-2024 shows significant price movement with clear areas of interest. The market showed a liquidity sweep near the 53,069 zone , followed by consolidation. A CHoCH (Change of Character) around 53,398 indicated a shift in trend. The resistance near 54,034 remains crucial, and breaking this could lead to a bullish rally toward new highs. The yellow trend represents sideways movement, the green trend shows bullish momentum, and the red trend indicates bearish possibilities.
Trading Plan for 11-Dec-2024:
Scenario 1: Gap Up Opening (200+ points above the previous close):
If Bank Nifty opens around 53,957 or above , the first resistance zone at 54,034 becomes crucial. Wait for price action near this level.
Plan of Action:
If it breaks and sustains above 54,034 , initiate a long position with a target of 54,479 . Place a stop loss just below 53,957 .
If there’s a rejection at 54,034 , look for short opportunities targeting 53,699 (Opening Support).
Avoid aggressive entries in the first 15 minutes to allow volatility to settle.
]
Scenario 2: Flat Opening (Within 50 points of the previous close):
If Bank Nifty opens near 53,604 , the Liquidity / NO Trade Zone (between 53,699 and 53,398) becomes the focus.
Plan of Action:
If the price stays within this range, avoid trades and wait for a breakout.
On a breakout above 53,699 , go long with a target of 54,034 . Keep a stop loss below 53,550 .
If it breaks below 53,398 , short the market targeting the Buyer's Support Zone near 53,069 .
Use small lot sizes to manage risk until a clear trend emerges.
Scenario 3: Gap Down Opening (200+ points below the previous close):
A gap down opening near 53,069 or lower will test the buyer’s strength.
Plan of Action:
If the price takes support near 53,069 , look for bullish reversal patterns and initiate a long position with a target of 53,398 . Keep a stop loss below 52,968 .
If it breaks below 52,968 , further downside to the Must Try Zone for Buyers at 52,650 is possible. Watch for reversals here to take long positions.
Avoid chasing the trend blindly in the first hour; let the market stabilize before entry.
Risk Management Tips for Options Trading:
Always calculate your risk before entering a trade. Limit risk to 1-2% of your total capital per trade.
For gap openings, avoid buying options immediately due to high premiums; wait for IV (implied volatility) to cool down.
Use spreads (e.g., Bull Call Spreads or Bear Put Spreads) to minimize risk.
Avoid overtrading and stick to predefined levels.
Summary and Conclusion:
For 11-Dec-2024, focus on key levels: 54,034 (Resistance), 53,699 (Support/Resistance), and 53,069 (Major Support). React based on price action and avoid impulsive decisions. The yellow zones suggest consolidation, green zones show bullish potential, and red zones indicate bearish sentiment. Maintain strict risk management and use options wisely.
Disclaimer: I am not a SEBI-registered analyst. The above analysis is for educational purposes only. Please consult your financial advisor before making any trading decisions.
