This analysis outlines potential trading strategies for the Bank Nifty based on various opening scenarios for April 23, 2024.
Key Levels:
- Support 1: 47,800
- Support 2: 47,289 (if price action forms)
- Resistance 1: 47,940
- Resistance 2: 48,116
Trading Scenarios:
1. Gap Up Opening Above 48,200
- Expectation: Sideways rangebound trading.
- Trading Range: 48,120 - 47,900
- Upside Targets:
- Breakout above 48,120 - Target 1: 48,524, Target 2: 48,793 (extended)
- Downside Target: Break below 47,900 with price action - Target: 47,300 - 47,289
- Short Entry: Not recommended until rejection at retest of 47,940
2. Flat Opening
- Expectation: Potential retracement within current resistance zone.
- Price Action: Watch for price movement within 47,800 - 48,116.
- Upside Target: Break above 48,120 - Target: 48,524
- Downside Target: Break below 47,800 with price action - Target: 47,289
- Short Entry: Not recommended until rejection at retest of 47,940
3. Gap Down Opening Below 47,800
- Scenario A: Quick Regain of 47,900
- Expectation: Correction followed by potential upside.
- Entry: Consider buying near 47,550 with a stop-loss below 47,480.
- Target: 47,900
- Scenario B: Sustained Price Below 47,800
- Expectation: Downward move.
- Fresh Buying: Not recommended until price breaks above 48,120.
- Upside Targets (if price recovers above 48,120): Target 1: 48,524, Target 2: 48,793 (extended)
Disclaimer: This is for informational purposes only and should not be considered financial advice. Please consult a qualified financial advisor before making any investment decisions.