This trading plan outlines potential entry and exit points for BANKNIFTY based on different opening scenarios on May 16th, 2024. Remember, this is for informational purposes only and should not be considered financial advice.
Opening Scenarios:
1. Gap Up Opening Above 47,850
Long Entry: If the price opens with a significant upward gap exceeding 47,850 and sustains this level for the first hour, consider a long trade targeting 48,111-48,209. If the price continues to climb and holds above 48,250, extended targets of 48,459-48,555 can be considered.
Short Entry: Conversely, if the price fails to hold the opening gain and falls back below 47,690 within the first hour, a short trade opportunity might arise. In this scenario, consider a short trade with a stop-loss (SL) placed at 47,849 and target levels of 47,475-47,434.
2. Flat Opening
Long Entry: If the opening is flat, but the price starts to move higher and surpasses 47,850 with sustained support at that level, consider a long trade targeting 48,111-48,209. Maintain a stop-loss at 47,690 to manage risk.
Short Entry: If the opening is flat, and the price declines below 47,588 within the first hour, a short trade opportunity might be present. In this scenario, consider a short trade with targets of 47,475-47,434. If the price weakens further and breaks below 47,400, additional target levels of 47,328-47,237 can be considered.
3. Gap Down Opening Below 47,550
Long Entry: If the price gaps down at the open, falling below 47,550, the initial support level might be found around 47,475-47,434. This area could present a buying opportunity if the price bounces back. A second buying opportunity might emerge in the range of 47,328-47,237, but place a stop-loss order at 47,187 to manage risk. The target for these potential long entries would be 48,000-48,111.
Conclusion:
This plan provides a framework for potential entry and exit points based on different opening scenarios. Remember, the market is dynamic, and these are just possibilities. Always conduct your own research and analysis before making any trading decisions.
Disclaimer:
Trading involves inherent risks. This information is not financial advice and should not be interpreted as such.