BANKNIFTY : Intraday Trading Levels and Plan for 05-Mar-2025

Market Context:
Bank Nifty closed at 48,289.30, showing some consolidation near the mid-range of the current structure. The key levels for the day include:

🔴 Resistance Zones:

48,408 – Opening Resistance / Support
48,611 - 48,712 – Last Intraday Resistance Zone
49,114 – Extended Upside Target
🟠 No Trade Zone: 47,954 - 48,106

🟢 Buyer’s Support Zone: 47,363 - 47,573

A 200+ point gap opening should be considered when planning trades. Let's analyze the different opening scenarios.

🟢 Scenario 1: Gap-Up Opening (200+ Points)
If Bank Nifty opens above 48,500, it will enter the Last Intraday Resistance Zone (48,611 - 48,712).

1. [] A strong opening with follow-through buying above 48,712 can push Bank Nifty toward 49,114, where profit booking may emerge.
   [] If resistance at 48,712 holds, expect a retracement back to 48,408 (Opening Support). A retest and rejection here may provide a short opportunity.
   
2. Traders should wait for a decisive hourly close above or below resistance before entering trades.
   

🔹 Trading Plan:

Look for a long position only if an hourly candle closes above 48,712, with 49,114 as the target.
If price struggles to sustain above 48,712, watch for a short opportunity targeting 48,408.
Option traders can consider 48,500 CE for long trades or 48,700 PE if rejection is seen.

🟡 Scenario 2: Flat Opening (Within 48,100 - 48,400)
If Bank Nifty opens near 48,289, it will be near the Opening Support/Resistance level (48,408).

1. [] Initial movement will determine direction. A breakout above 48,408 may lead to a test of 48,712, whereas rejection can lead to a retest of the No Trade Zone.
   [] If price enters the No Trade Zone (47,954 - 48,106), it's best to wait for a clear direction rather than forcing trades.
   
2. A break below 47,954 could lead to weakness, targeting the Buyer’s Support Zone (47,363 - 47,573).
   

🔹 Trading Plan:

Avoid trading inside the No Trade Zone.
Look for confirmation of support at 48,106 before entering long trades.
A rejection from 48,408 can provide a short opportunity toward 48,106.

🔴 Scenario 3: Gap-Down Opening (200+ Points Below)
If Bank Nifty opens near or below 47,900, it will enter a bearish phase with possible testing of the Buyer’s Support Zone (47,363 - 47,573).

1. [] The first reaction from this zone is crucial. A bounce from 47,363 can provide a high reward long trade opportunity.
   [] If Bank Nifty sustains below 47,954, avoid aggressive longs unless a strong reversal signal appears.
   
2. Breakdown below 47,363 can open the gates for further downside, making 47,000 - 47,100 the next potential target.
   

🔹 Trading Plan:

If price holds 47,363, a long trade can be considered with targets of 47,954 - 48,100.
If price fails to hold, a short position can be taken with a target of 47,100.
Option traders can use 47,500 PE for breakdown trades and 47,400 CE for reversals.
💡 Risk Management Tips for Options Trading
✅ Use Stop Loss on an Hourly Close Basis – Avoid holding options without confirmation of direction.
✅ Trade Small in No Trade Zones – Wait for a breakout or rejection before increasing position size.
✅ Monitor India VIX – If volatility spikes, avoid aggressive short selling.
✅ Book Profits at Resistance & Support Levels – Avoid holding options till expiry unless confident in direction.
✅ Stay Disciplined – If market structure changes, be quick to adapt rather than forcing trades.

📌 Summary & Conclusion
Bullish Scenario: Above 48,712, Bank Nifty can rally toward 49,114.
Neutral Zone: If trading between 47,954 - 48,408, wait for confirmation before trading.
Bearish Scenario: Below 47,954, weakness can extend toward 47,363, where a bounce is expected.
🔹 Best Risk-Reward Trades:

Buy near 47,363 if support holds.
Sell below 47,954 for a breakdown.
Buy only on a confirmed breakout above 48,712.
⚠️ Disclaimer:
I am not a SEBI-registered analyst. This analysis is for educational purposes only. Please conduct your own research or consult a financial advisor before making any trading decisions.