BANKNIFTY: Trading Plan and Levels for June 7, 2024
Following a successful prediction of price movements for Thursday's trading session, where prices were rejected from the expected range, we now outline the trading plan for Friday, June 7, 2024. This plan focuses on key levels and zones to guide trading decisions.
Key Levels and Zones:
Important Level for Profit Booking: 50,051
First Resistance: 49,879 - 49,767
No Trade Zone: 49,508 - 49,330
First Buyer’s Support: 48,850 - 48,778
Best Buy Zone: 48,654 - 48,578, with additional support at 48,443
Trading Plan Based on Opening Scenarios:
1. Gap Up Opening:
If the market opens above 49,508:
Action: Monitor the price action near the First Resistance zone (49,879 - 49,767). Look for signs of rejection or consolidation.
If the price fails to break above 49,879: Consider short positions with a target back to the No Trade Zone (49,508 - 49,330).
If the price breaks and sustains above 49,879: Hold long positions targeting the Important Level for Profit Booking (50,051).
2. Flat Opening:
If the market opens between 49,508 and 49,330:
Action: Avoid trading immediately as this is the No Trade Zone.
If the price breaks above 49,508: Look for long opportunities targeting the First Resistance zone (49,879 - 49,767). Place a stop-loss below 49,508.
If the price breaks below 49,330: Consider short positions targeting 49,107 initially, with a further target at the First Buyer’s Support (48,850 - 48,778).
3. Gap Down Opening:
If the market opens below 49,330:
Action: Look for buying opportunities near the First Buyer’s Support zone (48,850 - 48,778).
If the price holds above 48,850: Consider long positions with targets at 49,107 and 49,291. Place a stop-loss below 48,850.
If the price breaks below 48,778: Wait for the price to reach the Best Buy Zone (48,654 - 48,578). Look for buying opportunities with a tight stop-loss below 48,443.
Additional Notes:
Risk Management: Always use stop-loss orders to manage risk. Adjust position sizes according to your risk tolerance.
Market Conditions: Stay updated on any news or events that may affect market volatility.
Confirmation: Wait for price action confirmation before entering trades, especially at key levels and zones.
Conclusion
By following this structured trading plan, you can approach the BANKNIFTY market with a well-defined strategy, considering different potential scenarios at the opening on June 7, 2024. Adhering to risk management principles and staying informed about market conditions will enhance your trading decisions.
Disclaimer
This trading plan is for educational purposes only and does not constitute financial advice. Trading in financial markets involves significant risk and may not be suitable for all investors. Always conduct your own research and consult with a financial advisor before making trading decisions.