Context:
On the 22nd of May, 2024, BANKNIFTY experienced volatile price movements. Despite recovering from the day’s low, prices closed below the resistance zone of 48080-48180. Here’s the plan for the 23rd of May:
Trading Strategy:
Gap Up Opening (Above 48000):
If BANKNIFTY opens above 48000, buyers should consider buying if prices sustain above 48100.
Targets for the upside are 48285 and 48477.
If prices trade below 47852 after the gap-up opening, consider a short entry targeting 47620.
Flat Opening:
On a flat opening, buy if prices take support at 47852 with a SL below 47800.
The initial upside target is 48080.
If prices sustain above 48100, aim for 48285-48300.
If prices fail to support at 47852 and trade below 47800, consider a short trade targeting 47620-47600.
If prices slip below 47580, expect a further drop to 47300-47254.
Gap Down Opening (Below 47700):
Look for a buying opportunity near 47620 with a SL of 47580 and a target of 48080.
If prices trade below 47580, consider a short trade with a SL above 47650, targeting 47300-47254.
Conclusion:
Adapt your trading approach based on the market opening and early movements. Always ensure stop losses and targets are well-defined to manage risk effectively.
Disclaimer:
This trading plan is based on technical analysis and current market conditions. Market conditions can change quickly, and it is crucial to conduct your own analysis or consult a financial advisor before making trading decisions.
Trade closed: target reached