BANKNIFTY : Trading levels and plan for 18-Dec-2024

4天前

Trading Plan for Bank Nifty – 18th December 2024


The chart for 17th December 2024 outlined key levels like the **Golden Retracement Zone (₹52,581 - ₹52,998)**, deep retracement at ₹51,868-₹52,074, and potential resistance levels like ₹53,225 and ₹53,519. The plan predicted consolidation within the golden zone and a potential breakout. On 17th December, Bank Nifty respected the yellow highlighted zone (sideways trend) but showed weakness at intraday resistance. Buyers failed to take control, indicating the market might revisit lower retracement zones.

Now, let's discuss the detailed trading plan for 18th December based on potential opening scenarios.

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Trading Plan for 18th December 2024

[u]Key Levels for the Day:[/u]

1. Support Zone: ₹52,581 - ₹52,789 (Golden Retracement Zone)
   
2. Resistance Levels: ₹53,225 (Intraday Resistance), ₹53,519 (Resistance for New Highs)
   
3. Deep Retracement Zone: ₹52,074 - ₹51,868 (113%-127% Fibonacci)
   

Yellow Trend indicates sideways consolidation, Green Trend shows bullish movements, and Red Trend highlights bearish trends.

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[u]1. Gap-Up Opening (+200 Points or More Above ₹52,998)[/u]

- If Bank Nifty opens above ₹52,998, it enters the upper band of the **Golden Retracement Zone**.
- Immediate focus will be on **₹53,225** (Intraday Resistance).
- A bullish breakout above ₹53,225 may lead to a quick move toward **₹53,519** (Resistance for New Highs).

Plan of Action:

1. Look for bullish price action confirmation (green candles, strong volumes) near ₹52,998-₹53,225.
   
2. Place a buy trade above ₹53,225 for targets of ₹53,519, with a stop loss at ₹52,900.
   
3. If resistance at ₹53,225 holds and bearish candles appear, plan short trades below ₹53,000 targeting ₹52,789-₹52,581 (lower retracement zone).
   

Tips: Avoid chasing trades during the first 15 minutes; wait for clear price action confirmation around resistance zones.

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[u]2. Flat Opening (Near ₹52,789 - ₹52,998)[/u]

- A flat opening within the **Golden Retracement Zone** suggests potential sideways consolidation.
- Buyers will likely attempt to defend the zone between ₹52,789-₹52,581.

Plan of Action:

1. Observe price behavior within the range. If support holds above ₹52,789, consider a buy trade above ₹52,998 with targets at ₹53,225 and ₹53,519.
   
2. If price breaks below ₹52,581, shift focus to the **Deep Retracement Zone (₹52,074-₹51,868)**. Plan a short trade targeting ₹52,074 with a stop loss at ₹52,800.
   

Tips: For options traders, use **strangle or straddle strategies** to capture sideways volatility if price stays within the golden retracement range.

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[u]3. Gap-Down Opening (-200 Points or Below ₹52,581)[/u]

- A gap-down opening below ₹52,581 will indicate bearish pressure.
- Price is likely to test the **Deep Retracement Zone (₹52,074 - ₹51,868)**, a potential reversal area for Wave C.

Plan of Action:

1. Wait for price to enter the deep retracement zone. Look for bullish reversal patterns (e.g., hammer, bullish engulfing) near ₹52,074-₹51,868 before initiating a buy trade targeting ₹52,581.
   
2. If price fails to hold ₹51,868, plan short trades targeting ₹51,500 with a stop loss at ₹52,200.
   
3. For aggressive traders, sell on breakdowns below ₹52,581 for quick intraday moves toward the deep retracement zone.
   

Tips: In case of a gap-down, avoid panic trades. Wait for price to stabilize and confirm levels before entering positions.

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[u]Risk Management Tips for Options Trading:[/u]

1. Avoid over-leveraging; allocate no more than 2% of capital per trade.
   
2. Use hedging strategies like bull call spreads or bear put spreads to limit risks during volatile sessions.
   
3. Always place stop-loss orders for both futures and options trades.
   
4. Avoid trading options with low liquidity to minimize slippage.
   

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Summary and Conclusion:
- For 18th December 2024, the **Golden Retracement Zone (₹52,789 - ₹52,998)** is the key area to watch. A breakout above ₹53,225 can trigger a bullish rally, while a breakdown below ₹52,581 may lead to further bearishness toward the deep retracement zone.
- Sideways consolidation is expected if the price remains within the golden retracement range.
- Focus on price action signals and risk management to navigate the session effectively.

Disclaimer: I am not a SEBI-registered analyst. The views expressed here are for educational purposes only. Please consult your financial advisor before making trading decisions.