BANKNIFTY Futures trade set up and plan- coming sessions

Banknifty futures continue to trade within the range created on the 1^st week of june, that’s five weeks in a row, so much so that now a weekly plan almost looks like a daily plan from the range point of view.

But as a trader these are the times you need to continue to stay foot and don’t get complacent about positions and keep the plan going .

Coming back to the charts, Banknifty continue to trade and create value within the 38.2% - 78.2% retracement of the range. So until we get a confirmed close outside the range its best to trade a pullback to the range zones. There are two zones within this range that has good volumes 26540 on the higher side and 26360 on the down side. So here are the few trading scenarios coming to this week.

Trade plan scenarios:

1. Primary hypothesis remains to trade back within the range, despite gap up or gap downs. In case the chart set up support.  So on the upside until 26640 is breached look for a pullback to 26540, 26380 levels. And on the downside look for a pull back to 26360 levels  until 26150 hold
2. Trade a break out of 26640 to test  26790 and higher levels.
3. Trade a break down below 26160 to test 26980 , 26850 zones.

My own bias still remains on the short side , that essentially means I will be careful with positions size on the long side and be more aggressive with the position size on the down side if a short opportunity looks viable.

BankNifty Near Term Scenarios and potential trade setups

Banknifty marked a good late pull back in the last week of the series to test the weekly vwap @ 24500 levels. And managed to close below it @ 24300 zones. From a monthly candle perspective, we still formed a negative candle, where monthly highs tested the Jan lows but failed to go past it.

Now here are the few trade scenarios from here:

1. Markets manage to respect immediate 24250 zones and pull back to cross 24500, it can test 24800 levels where a lot of selling pressure may emerge. Above 24800 markets can go on to test 25200 and 25500 levels.
2. On the downside if markets break below 24100 it can test upto 23800 zones. Real selling pressure may only emerge on the break of that.

What could be interesting is that markets manage to test 24100 or lower and manage to pull back to do a test of 24800 in the coming sessions. Then we can see a direction emerging.