Analysis Academy

Banknifty - If Banknifty opens gap up, previous day's high will be the next resistance, which is close to 48000 and this level is tested multiple times if Banknifty breaks the resistance, we can plan for a Call option trade only when Banknifty sustains above this level. in case Banknifty faces resistance and moves downside I will not plan for a put trade because the market might trap put buyers and give breakout so need to wait for some time if Banknifty faces resistance at 48000

Nifty - Gift Nifty showing a 100-point gap up, so I have marked some important resistance levels. If Nifty opens gap up and moves upside 22356 and 22418 are the resistance levels, if Nifty continue the upside move needs to plan trades only if Nifty gives a retracement, otherwise if Nifty continuously moves upside, it might trap call buyers and reverse, if Nifty reverses with small stop loss I will plan for a Put trade. If Nifty opens gap up and breaks the 22297 previous day's high, Nifty has a space to move downside so if we get a bearish confirmation we can plan for a Put trade, 22244 is the next support.

Because the market is accumulating both put and call buyers, and breakouts are important, should not plan any trades until the said levels are broken

If BN breaks the day's low, my plan will change, I will look for put side opportunities

Market is not breaking the day's low for puts and not moving above the swing high for call, just trading at the same price levels, Nifty too

BN taking support at day's low, put buyers might have entered at the trend line breakdown so market might target sellers and move upside, but Bn should move above 47680

Banknifty - If Banknifty opens gap up and moves downside, 47936 is the support level, if Banknifty breaks the support and moves downside Banknifty also will enter into a consolidation range and the trend line also acts as support, so no put trades at this price levels. but Banknifty might reverse from the trend line support or it might move down to give confidence to sellers later it might reverse, whenever Banknifty starts reversing towards the upside, with the small risk we can plan for a Call option trade. if Banknifty also moves upside after gap up opening, I will wait and observe the market because if Banknifty continues the upside move retail traders also will consider entering call options, so the market can easily trap them, however, we need to wait and plan our trades if Banknifty moves upside.

Nifty - Gift Nifty showing 50 points gap up, if Nifty opens gap up and starts moving down, PDH 22266 will act as support, but in case Nifty breaks the support levels, retail traders might plan for a Put trades, but if you see Nifty will enter into a consolidation range, so do not plan any trades inside the range, but market can move upside to target retail traders, in case Nifty moves upside with small risk we can plan for a Call option trade. if Nifty opens gap up and moves upside, planning for a Call will not be a good idea because retail traders also will think of call options, in case the market has to move upside, after a retracement market will continue the upside, so after retracement we can plan for a Call option trades, but not before the retracement.