After a week of notable fluctuations in BANKNIFTY, concluding with a session marked by rejection and consolidation near its upside retracement resistance, the market remains in a state of uncertainty. As we approach the final week of December 2023, a cautious stance suggests a preference for "sell on rise" trades, unless prices convincingly breach the 21,504 level, indicating a potential downward movement towards the 21,000 - 20,951 range (weekly view).
**Recommended Trading Strategy for December 26, 2023:**
1. **Buy Scenario:**
- If prices open above 21,350 and find support at 21,330,
- Initiate a buy near 21,350 with a stop loss (SL) at 21,325 for a target range of 21,464 to 21,504.
- A sustained move beyond 21,520 could lead to further upside, targeting 21,606 - 21,646.
2. **Sell Scenario:**
- In the event of a high opening near 21,500, potentially prompting profit booking and a subsequent drop to around 21,350,
- Consider a short position below 21,464 with a SL at 21,504-21,510 for a target range of 21,350 - 21,330.
3. **Flat Trading Scenario:**
- If prices trade flat and below 21,330, facing rejection near 21,350-21,360,
- A risky short entry can be considered for a target of 21,195 with a SL at 21,360.
4. **Lower Opening Scenario:**
- Should prices open lower below 21,180, potentially leading to sideways movement in the range of 21,195 - 21,250,
- Plan a buying trade near 21,195 with a SL of 20 points for the target of 21,250 - 21,275 - 21,300.
- In case of a stop loss, consider a second buying trade near 21,100 - 21,085 with a SL of 21,065 for the target of 21,200 - 21,250.
- The range of 20,951 - 20,896 is considered a favorable buying zone for positional traders with a SL of 20,800.
This strategy is designed to offer guidance in diverse market scenarios, enabling traders to adapt to changing conditions on December 26, 2023.