BANKNIFTY – Levels and Trading Plan for May 3rd, 2024

After breaking below the support of 49367 and closing above the intraday support level of 49159, prices traded in a range without indicating any signal for recovery yet. Let's explore potential scenarios for different openings on Friday, May 3rd, 2024:

Gap Up Opening above 49367:

If prices sustain above 49367 in the first hour, they could move towards 49548 – 49791. Rejection near new highs above 49800 could lead to a drop towards 48896 – 48807. Alternatively, breaking above 49800 could target 50187 – 50200.
Flat Opening:

In case of a flat opening and trading below 49159, prices might drop to 48896-48807. From there, they could find support for a recovery towards 49367 – 49558. However, failure to find support at 48800 could drive prices to 48588 – 48501 before bouncing back to 49000 – 49159.
Gap Down Opening below 49000:

Initially, prices may find support near 48896 – 48807. Further, if support at 48800 fails and prices trade below 48880, they could drop to the next support and the best buying range of 48588-48501.
Conclusion and Disclaimer:
Traders should seek buying opportunities at support levels or upon breaking resistance levels mentioned in the analysis. Short-side trades can be initiated at resistance levels with a stop loss of 100 points or upon failing support levels.

Disclaimer: Trading involves risks and it's important to do your own research and consider your risk tolerance before making any trading decisions. The provided analysis is for informational purposes only and should not be construed as investment advice.