BANKNIFTY : Trading Plan and Levels for 09-Dec-2024

Dec 8

Bank Nifty Trading Plan for 09-Dec-2024

Previous Day's Chart Pattern:
On 08-Dec-2024, Bank Nifty exhibited a consolidation pattern and forming a No Trade Zone, with price movement oscillating between 53,487 and 53,699. Buyers displayed confidence at the golden retracement zone but faced resistance near 54,258. The yellow zone marked a sideways trend, while green indicated bullish attempts that were capped by red bearish resistance levels. This sets the stage for multiple potential scenarios tomorrow.

Trading Plan for 09-Dec-2024:

1. Gap-Up Opening (+200 points or more above 53,699):
   
   If Bank Nifty opens above 53,699 and sustains, the index is likely to test the first resistance at 54,258. Watch for price action at this level:
   
   If it breaks above 54,258, the next target will be 54,479 (potential new all-time high resistance). Consider initiating long positions near 54,258 with a stop loss just below 54,185.
   However, if rejection occurs at 54,258, expect a pullback toward 53,699. In this case, avoid aggressive longs and wait for confirmation before re-entering trades.
   Risk Management Tip: For options buyers, focus on ATM or slightly OTM contracts with small quantities. If price approaches resistance zones, consider booking partial profits.
   
   
2. Flat Opening (Within the No Trade Zone 53,487–53,699):
   
   In the case of a flat open, patience is key:
   
   If price sustains above 53,699, this will indicate bullish intent, targeting 54,258. Go long after a clear breakout with stop loss near 53,487.
   Conversely, if the index drops below 53,487, it may retest the key support zone at 53,017. Initiate short trades cautiously with tight stop loss above 53,487.
   Risk Management Tip: Avoid over-leveraging in a choppy zone. Wait for the first 30 minutes to gauge market sentiment.
   
   
3. Gap-Down Opening (-200 points or more below 53,487):
   
   If Bank Nifty gaps down below 53,487:
   
   Initial support lies at 53,017. If this zone holds, we may see a reversal toward the No Trade Zone. Watch for bullish candlestick patterns to confirm a rebound.
   If 53,017 breaks, the next key level is 52,715 (deep retracement and must-try support for buyers). Consider shorts below 53,017 with a target near 52,715, keeping a stop loss at 53,200.
   Risk Management Tip: For bearish scenarios, buy puts cautiously. Avoid illiquid contracts and use spreads to limit risk.
   

Summary and Conclusion:

The market remains at a pivotal zone, with clear levels to monitor for breakouts or breakdowns.
Yellow zones highlight areas of consolidation, green zones indicate bullish trends, and red zones point to bearish resistance.


Adhere strictly to the No Trade Zone boundaries to avoid unnecessary risks.
Disclaimer: This analysis is for educational purposes only. I am not a SEBI-registered analyst. Traders are advised to do their own research or consult a financial advisor before trading.