BANKNIFTY - Trading plan and levels for 05-Feb-2025

📌 Bank Nifty Trading Plan – 05-Feb-2025

📊 Market Overview & Key Levels

• [] Previous Close: 50,111.65[] Resistance for Sideways: 50,310-50,374[] Profit Booking Zone: 50,970[] Opening Support / Resistance Zone: 50,147-50,310[] Opening Support: 49,875-49,866[] Last Intraday Support: 49,550

📈 Opening Scenarios & Trading Plan

🟢 Scenario 1: Gap-Up Opening (📈 200+ points)

• [] If Bank Nifty opens above 50,310-50,374, it enters a resistance zone.
  [] A strong hourly close above 50,374 can trigger a bullish move toward 50,600-50,970.
  
• However, if prices struggle to hold above this zone, expect a pullback towards 50,147-50,310 before further movement.
  

📌 Trading Plan:

• [] Wait for price confirmation near 50,374 before going long.
  [] A rejection from resistance (candlestick reversal patterns like shooting star or bearish engulfing) could trigger a short trade toward 50,147.
  
• Stop loss should be placed above 50,400 for shorts and below 50,250 for longs.
  

🔽🔽🔽

🟠 Scenario 2: Flat Opening (📊 ±100 points from previous close)

• [] If Bank Nifty opens within 50,100-50,200, expect range-bound movement in the first 30 minutes.
  [] A breakout above 50,310 confirms a bullish trend, while a breakdown below 50,100 indicates weakness.
  

📌 Trading Plan:

• [] For a breakout above 50,310, enter longs with a target of 50,600-50,970.
  [] For a breakdown below 50,100, short with a target of 49,866-49,550.
  
• Wait for confirmation on 15-min candle close before entering trades.
  

🔽🔽🔽

🔴 Scenario 3: Gap-Down Opening (📉 200+ points)

• [] If Bank Nifty opens below 49,875, it enters a strong support zone.
  [] A further breakdown below 49,550 can accelerate selling pressure toward 49,300-49,200.
  

📌 Trading Plan:

• [] If price stabilizes above 49,866, consider a bounce trade for quick scalping toward 50,100.
  [] A break below 49,550 confirms further weakness – enter shorts targeting 49,300.
  
• Keep SL above 49,950 for shorts and below 49,500 for longs.
  

📌 Risk Management Tips for Options Trading 🎯
✅ Use Stop Losses Based on Hourly Close: Avoid emotional exits, always base SL decisions on market structure.
✅ Avoid Trading in No-Trend Zones: If price is stuck in the 50,147-50,310 range, wait for a breakout confirmation.
✅ For Option Buyers: IV crush can affect premiums, prefer ATM/ITM options for better movement.
✅ For Option Sellers: Use hedging strategies like spreads to limit risk.

📊 Summary & Conclusion

• [] Bullish Confirmation: Above 50,374, targeting 50,600-50,970.
  [] Bearish Confirmation: Below 49,875, with potential downside toward 49,550-49,300.
  [] Sideways Range: Between 50,147-50,310, avoid unnecessary trades.
  [] Watch Price Action for Breakouts & Rejections before entering trades.
  

📢 Disclaimer
I am not a SEBI-registered analyst. This analysis is for educational purposes only. Please conduct your own research or consult with a financial advisor before making any trading decisions.