BANKNIFTY : Trading levels and Plan for 21-May-2025

🧠 Bank Nifty Trading Plan for 21-May-2025
Chart Timeframe: 15 min | Reference Price: 54,932
Gap Threshold: 200+ points

1. 📈 Gap-Up Opening (200+ Points Above Previous Close)
   
     If Bank Nifty opens above 55,130+, prices will likely open inside or just near the Opening Resistance Zone of 55,068 – 55,147.
   
     🟧 In this case, avoid aggressive long entries at the open. Let the index first test this resistance zone. Only if an hourly candle closes above 55,147, you may consider going long for a target towards the Last Intraday Resistance of 55,260, and then possibly 55,511 if momentum continues.
   
     🚫 However, if price fails to hold above the zone and shows rejection candles or breaks back below 55,000, consider short opportunities with confirmation for a downside toward the 54,800–54,700 zone.
   
     🎯 Plan of Action:
     – Watch price behavior around 55,068 – 55,147.
     – Hourly close above → Longs with SL below zone.
     – Rejection → Wait for confirmation, short with SL above zone.
   
     
   
   
2. 📊 Flat Opening (within ±200 points)
   
     A flat open near 54,900–55,000 keeps both breakout and breakdown possibilities active.
   
     🟢 Wait and observe for the first 30 minutes. If Bank Nifty begins to trend upward with strong bullish candles, then 55,068–55,147 becomes the crucial breakout zone to watch for intraday longs.
   
     🟩 On the downside, if prices drift into the Support Zone of 54,707 – 54,794 and show a reversal sign (bullish engulfing or pin bar), it can offer a good long opportunity with tight SL.
   
     ❌ But if the support breaks convincingly with an hourly close below 54,707, expect a potential decline towards 54,284, and even 54,100 in extended weakness.
   
     🎯 Plan of Action:
     – Avoid early trades, allow structure to form.
     – Long above resistance with hourly close.
     – Short below 54,707 with candle confirmation.
   
     
   
   
3. 📉 Gap-Down Opening (200+ Points Below Previous Close)
   
     If the index opens near or below the support zone at 54,700 or lower, especially in the range of 54,500–54,600, watch closely for a retest of the green zone (54,707–54,794) from below.
   
     🔁 If it retests and fails to reclaim, you can look for shorting opportunities for targets of 54,284 and then 54,100.
   
     🟢 If the price stabilizes above 54,707 and shows strength, it may turn into a quick reversal trade back toward 55,000. But this needs early confirmation and discipline.
   
     🎯 Plan of Action:
     – Below 54,707 → Bearish bias.
     – Reclaim with strength → Intraday reversal possible.
     – Avoid trading right at open in panic; wait 15–30 mins.
   
     
   
   

💡 Options Trading Risk Management Tips

✅ Always define your maximum loss per trade and stick to it. Use predefined SL, especially on option buys.
✅ Avoid trading large position sizes in weekly expiry weeks unless direction is clear.
✅ Avoid averaging losing trades; instead, wait for proper re-entry points.
✅ Use ATM or slightly OTM options for directional trades—avoid deep OTM options unless you are scalping with experience.
✅ If taking multiple trades, follow 1-2% rule on capital per trade risk for better capital preservation.

📌 Summary & Conclusion

– Market structure remains volatile with a bearish short-term bias, unless 55,147+ is reclaimed.
– 55,068–55,147 is the crucial resistance zone.
– 54,707–54,794 acts as a major support for intraday direction.
– Any move below 54,707 could trigger deeper fall toward 54,284 & 54,100.

Stay nimble, respect levels, and always trade the reaction, not the prediction. Let price action guide your entry/exit.

⚠️ Disclaimer:
I am not a SEBI-registered analyst. This trading plan is shared purely for educational and informational purposes. Please consult your financial advisor before making any trading decisions.