Intraday Adventures in Nifty and Banknifty: A Day of Missed Opportunities and Key Takeaways

Trading the Indian stock market indices—Nifty 50 and Banknifty—can sometimes feel like being on a roller coaster. One moment you’re soaring with profits; the next, the market takes a nosedive, leaving you regretting not having held on for just a little longer. Today was one of those days where the markets opened somewhat positively, but by mid-session, both Nifty and Banknifty had fallen significantly, creating a mixture of thrills, lessons, and, of course, some profits. Here’s a detailed account of what happened and what I learned.

Nifty:

Opened with a +41.05 points gap-up, not a massive opening but enough to pay close attention to any potential continuation or reversal. Similar to Banknifty, I marked the weekly and daily highs/lows. I also highlighted a zone in Nifty around 23905–23938. If price slipped below this zone, I intended to plan an option-selling strategy. However, I noted that just below this zone there was a trendline support, so caution was necessary.

My plan was to follow a 5-minute price action strategy for my initial trades, but I switched to a 15-minute setup instead. This deviation proved costly in terms of risk-to-reward opportunities.

1. I entered 51500 CE at ₹648 and exited at ₹613.45 with a 60-quantity lot.
2. The overall gain was 34.55 points, translating to a profit of ₹1,954.44.

While the trade was profitable, I couldn’t help but notice that if I had stuck to the original 5-minute strategy—or if I had held on longer—I might have captured a bigger move. Banknifty demonstrated substantial volatility throughout the day, and missing the right entry (or exit too early) can mean leaving quite a bit on the table.

In Nifty, as mentioned, I marked the 23905–23938 zone. Below this, I was keen on selling options. However, because there was a trendline support just underneath, I needed more confirmation.

• Initially, the price bounced back from this zone and nearly retraced to the day’s high.
• Eventually, it broke the trendline.

I waited for at least one green candle to confirm my entry. Instead of a clear bullish candle, I got a doji on the 5-minute chart. The doji signified indecision, so I decided to cut my position size in half for safety.

• I added 24000 CE at ₹87.10 and exited at ₹79.60, netting a gain of 7.5 points.
• The profit from this trade was around ₹503.40.

Again, the take-home lesson: waiting for confirmation in a falling market can save you from losses, but it can also limit your potential profits if the market resumes its downward trend too quickly.

This is the classic day trader’s dilemma—“if only I had held on!” By around 11:25 AM, Banknifty was down by 760 points, and Nifty was down by 260 points. Had I maintained my earlier Banknifty position, the profit would have been spectacular. But hindsight is always 20/20, and preserving capital often takes precedence when you’re not fully confident in the setup.

In Nifty, a 15-minute price action strategy indicated a good entry with a target around the next round number, 26000. Of course, Nifty didn’t actually reach 26000 (given the actual levels, it sounds more hypothetical or a place of strong psychological resistance/support), but the principle stands—round numbers often act like magnets in market psychology.

Similarly, for Banknifty, I had a bullish stance if it held above 50,500 and targeted the 50,000 round mark. However, a flag pattern in Banknifty suggested that if it broke down below 50,000 convincingly, it would trigger an even larger downside move. Indeed, Banknifty ended up falling 1000+ points in total, fulfilling the breakdown scenario.

I attempted another late entry in Banknifty, buying 50,500 CE at ₹465, but I ended up exiting prematurely again. This recurring theme of “late entries and early exits” was the hallmark of my day—profitable, yes, but not as lucrative as it could have been.

Nifty eventually reversed from the yellow zone I had marked. The price had previously fallen from that level, so when it revisited, I expected some reaction. A scalp trade emerged on the 5-minute timeframe from 23661 to 23626 in the spot. This quick move yielded a decent, swift profit. Why 23626? Because the price had shown a bullish reaction from that level earlier, making it an obvious spot to book profits before sellers potentially stepped in again.

• Trust Your Preferred Timeframe: If your strategy revolves around the 5-minute chart, don’t abruptly shift to the 15-minute chart on a whim. Consistency in your approach can yield more reliable entries and exits.
• Mark Critical Zones Early: Knowing where your support/resistance, trendlines, and round numbers lie helps in planning trades and potential targets ahead of time.
• Position Sizing Matters: When the market shows uncertainty (like forming dojis instead of strong bullish/bearish candles), reducing your position can protect you from bigger losses.
• Don’t Fear Missing Out: Sometimes you’ll see how huge the move was in retrospect. It’s better to secure a modest profit than to risk being on the wrong side of a fast-moving market.
• Mind the Round Numbers: Levels like 50,000 in Banknifty or 26,000 in Nifty often act as psychological barriers where buyers or sellers might step in.
• Adapt but Don’t Overreach: If the price action is telling you the market is going against your position, it’s often wise to exit. But be mindful not to abandon profitable trades too soon if your analysis still holds.

In the end, today’s trading session taught me that success in the markets lies in planning, patience, and disciplined execution. Yes, I left some profits on the table. Yes, I wish I had held on longer. But each trade brought with it essential lessons that will shape my strategies moving forward. Ultimately, the ability to adapt, identify key levels, and manage risk will carry me further along the journey of becoming a consistently profitable trader.

Here’s to refining our craft, trade by trade, candle by candle!