Overview
On 22-May-2024, BANKNIFTY took support at the marked opening support zone, breached the upper band of the resistance zone but retreated back near the lower band, signaling a potential reversal. Here’s a detailed plan for trading BANKNIFTY on 22-May-2024 (expiry day).
Gap Up Opening
If BANKNIFTY opens above 48150:
Sustains above 48180 for the first trading hour:
Buy Trade:
Target: 48419
Sideways Movement: Prices might face rejections and trade sideways at this level.
Break and Sustain Above 48450:
Next Target: 48606
Doesn’t sustain and trades below 48000:
Short Trade:
Target: 47879
Below 47800: Prices may drop to 47674 – 47621
Flat Opening
If BANKNIFTY opens flat:
Faces rejection at 48000 – 48025 and trades below 48000:
Short Trade:
Target: 47879 – 47850
Extended Drop: To 47674 – 47621 where a buying trade can be considered for a reversal move.
Trades above 48050 and takes support at 48024:
Buy Trade:
Target: 48200
Break and Sustain Above 48250: Prices may target 48419 and above 48450, prices could reach 48606.
Gap Down Opening
If BANKNIFTY opens below 47800:
Takes support at 47879 and spends time above this level:
Buy Trade:
Target: 48024 and 48180
Fails support at 47850:
Short Trade:
SL: 47900
Target: 47674 – 47621
Conclusion
Traders should be prepared for various opening scenarios and follow the appropriate trading strategies. Proper risk management through stop-loss settings and strategic profit booking is essential.
Disclaimer
This plan is intended for educational purposes only and should not be interpreted as financial advice. Trading in the stock market carries risks, and consulting with a financial advisor before making trading decisions is recommended.