Overview:
Saturday's session saw insignificant price movement due to low participation, closing on a slightly higher side but not enough to alter Friday’s levels. Here’s the expected movement based on different opening scenarios for Monday, 20-May-2024.
Gap Up Opening Above 48350:
Initial Movement: Prices may first move towards 48415 – 48450. If prices sustain above 48450, they could reach 48605.
Sustaining Above 48620: If prices hold and close above 48620, they could move towards 49333 over time. In a gap-up scenario, traders should consider a short trade below 48400 (if facing rejection near 48430 – 48450), targeting 48127 – 48024 with an SL above 48620.
Flat Opening:
Sustaining Above 48230: A buy trade can be considered if prices sustain above 48230 for the first hour, targeting 48415 – 48435 with an SL at 48127.
Sustaining Below 48100: Similarly, look for a short trade if prices hold below 48100 for the first hour and start trading below 48024 without breaking the previous trading day’s high. Set an SL above 48127, targeting 47943 - 47784.
Gap Down Opening Below 48100:
Sustaining for First Hour: If prices open below 48100 and hold for the first hour, consider a short trade with an SL at 48127-48130, targeting 47983 – 47784. A buy trade can be planned after appropriate price action.
Regaining 48127: If prices quickly regain 48127 after a gap-down opening and hold for the first hour, consider a buy trade targeting 48400 – 48435 and 48600 with an SL below 48024.
Conclusion:
For BANKNIFTY, the trading strategy for 20-May-2024 involves careful observation of key levels and making informed trades based on whether prices sustain above or below these levels. Each scenario—gap up, flat, or gap down—has specific strategies to optimize potential gains and manage risks effectively.
Disclaimer:
This analysis is based on current market conditions and is intended for informational purposes only. Trading in financial markets involves risk, and individuals should conduct their own research or consult with a financial advisor before making any trading decisions.