Scenario 1: A gap up opening above 49050, with support at 48950, may propel BANKNIFTY towards 49187 – 49228. However, if it fails to sustain and faces rejection, a decline towards initial support at 48782 is likely. Breaking below 48750 could trigger short-side trades with a stop loss at 48800, targeting 48519 – 48454.
Scenario 2: In the case of a flat opening, a drop towards 48782 is probable. If prices remain within 48850 – 48750 for the first hour, a further decline towards 48519 – 48454 is anticipated. This range may act as a resistance if breached downwards, potentially indicating a corrective wave formation.
Scenario 3: A gap down opening below 48700, followed by a recovery attempt, might face rejection near 48782-48800. Short trades with a stop loss at 48900 could target 48519 – 48454. If support is found around 48400, a buying opportunity with a tight stop loss could arise, failing which a sharp drop towards 47950 may occur.
Conclusion: Traders should adapt their strategies based on the unfolding scenarios, utilizing the provided support and resistance levels. Vigilance and risk management are crucial in navigating the market.
Disclaimer: The trading levels and plan presented here are for informational purposes only and should not be construed as financial advice. Traders are encouraged to conduct their own analysis and seek guidance from financial professionals before making any trading decisions. Trading in financial markets involves inherent risks and is subject to market fluctuations.
Scenario 2: In the case of a flat opening, a drop towards 48782 is probable. If prices remain within 48850 – 48750 for the first hour, a further decline towards 48519 – 48454 is anticipated. This range may act as a resistance if breached downwards, potentially indicating a corrective wave formation.
Scenario 3: A gap down opening below 48700, followed by a recovery attempt, might face rejection near 48782-48800. Short trades with a stop loss at 48900 could target 48519 – 48454. If support is found around 48400, a buying opportunity with a tight stop loss could arise, failing which a sharp drop towards 47950 may occur.
Conclusion: Traders should adapt their strategies based on the unfolding scenarios, utilizing the provided support and resistance levels. Vigilance and risk management are crucial in navigating the market.
Disclaimer: The trading levels and plan presented here are for informational purposes only and should not be construed as financial advice. Traders are encouraged to conduct their own analysis and seek guidance from financial professionals before making any trading decisions. Trading in financial markets involves inherent risks and is subject to market fluctuations.