BANKNIFTY Analysis for May 13, 2024: Levels and Plan

Similar to NIFTY, BANKNIFTY witnessed bearish dominance last week, closing with a bearish weekly candlestick, yet maintaining a crucial support level around 47305 on the hourly timeframe. For the upcoming week, two key scenarios are under consideration:

1. Gap Up Opening:
In the event of a gap up opening above 47700, sustained closure above this level without breaching last week's low could signal a potential uptrend towards levels around 47851 – 48084. Short trades are discouraged unless prices breach below 47900 post-rejection from 48084. Further upside potential could lead prices towards 48300 – 48360.

2. Flat Opening:
For a flat opening scenario, it's advisable to refrain from trading until prices break either 47300 on the downside or 47700 on the upside. Risk-takers may consider buy trades, but cautious investors may opt to wait for clearer price action.

3. Gap Down Opening:
A gap down opening below 47300, sustained below this level, might trigger short trades targeting levels at 46988 – 46850. Conversely, a swift recovery above 47300 could signal a buy opportunity, potentially leading to a sharp recovery.

Conclusion:
The market's performance within the first trading hour will be crucial, with sustained movement above 47700 indicating a bullish sentiment towards higher levels.

Disclaimer: This analysis is for informational purposes only and should not be considered as investment advice. Traders should conduct their own research and seek professional guidance before making any trading decisions.