A Gap-Down Start, Missed Synchrony, and a Modest Finish

After a series of gap-up openings, both Nifty and Banknifty broke the streak today, beginning the session in the red. Nifty opened –16.75 points lower, and Banknifty gapped down by –106.35 points near the 50,000 round number.

In the last three trading days, the market had shown a pattern of gap-ups closing with red daily candles, fueling my speculation that if today also started with a gap-up, we might finally see a green close. Instead, the exact opposite happened: a gap-down that introduced a new set of challenges and opportunities.

Nifty quickly formed a tradable setup on the 5-minute chart, aligning with my usual 15-minute strategy. Sensing an opportunity for a bearish play, I sold 23,500 CE at ₹120. Ideally, I should have entered closer to ₹135, but I was a bit late to pull the trigger. I placed my Stop Loss (SL) at ₹140, hoping Banknifty would confirm the downward move in Nifty. Unfortunately, Banknifty didn’t fully align with Nifty’s direction; my stop was triggered, ending that trade prematurely.

Meanwhile, Banknifty’s first 5-minute candle spanned roughly 184 points, setting a wide initial range. The index remained within that band for a while, leaving me on the lookout for a breakout or a break below 50,000. A clear move under 50,000 on a closing basis could signal more selling pressure—especially if it coincided with broader market weakness.

After my first trade in Nifty stopped out, I re-entered 23,500 CE, this time at ₹118.55, targeting a gap fill in the spot chart. Indeed, the gap got filled, and I watched closely to see if Nifty would press further down. When that didn’t materialize, I exited around ₹109.65, securing a small gain. I was hoping for further bearish movement but when I saw price is ranging I exited the trade with small gains.

With Banknifty hovering below 50,000, I saw a chance after a rejection at day’s low and some 15-minute price action. I sold 50,200 CE at ₹691.60, aiming to capture around 50 points. I exited at ₹646.15 once Banknifty started ranging sideways and neared a support line. There wasn’t enough confidence for a bigger move, so taking the quick profit felt prudent.

By around 10:28 AM, Nifty had dropped 172 points, and Banknifty was down 370 points. Both indices then slipped into a range-bound phase, prompting me to step back until at least 12:00 PM. At midday, the market remained choppy, with slight upward and downward swings, but nothing decisive enough to warrant a new position. Later, near 2:00 PM, both indices showed bullish flickers; still, I chose to avoid fresh trades, deciding the risk-to-reward wasn’t compelling enough.