SENSEX : Trading levels and Plan for 04-Dec-2025

📊 SENSEX TRADING PLAN — 04 DEC 2025

Price closed near 85,118, sitting just below key zones:
• Opening Resistance/Support: 85,157
• Opening Support: 84,859
• Opening Resistance Zone: 85,320–85,433
• Last Intraday Resistance: 85,818
• Last Intraday Support: 84,335

The market recently bounced from lows but still sits within a corrective structure. Tomorrow’s opening direction will decide whether SENSEX attempts to retest upper resistance zones or slides back toward the 84,335 support region.

🚀 1. GAP-UP OPENING (300+ points)

A gap-up above 85,433 or directly inside the Opening Resistance Zone (85,320–85,433) demands patience and confirmation-based trading.

1. 
   1. If price opens inside 85,320–85,433
   • Avoid chasing longs immediately.
   • This zone historically attracts sellers.
   • Wait to see if price rejects with wicks or bearish CHoCH.
   • Short entries become valid only if price falls back below 85,157.
   • Downsides: 84,859 → 84,600.
   
   2. If price opens above 85,433
   • Look for a retest of 85,320–85,433 before entering long.
   • If retest holds → Upside targets toward 85,600 → 85,818.
   • This is the highest-probability long of the day.
   
   3. Breakout above 85,818 (Last Intraday Resistance)
   • Needs a strong bullish candle close.
   • If sustained → Momentum expansion toward 86,000+ possible.
   • Book partial profits near earlier swing highs to reduce risk.
   

📌 Educational Note:
A gap-up often creates FOMO. But professional traders wait for retests because they reduce risk and confirm buyer strength.

⚖ 2. FLAT OPENING (±80 pts around 85,118)

A flat open allows structure-based trading on both sides, offering cleaner setups.

1. 
   1. If price sustains above 85,157
   • Buyers show early strength.
   • Upside targets: 85,320 → 85,433 → 85,600.
   • Watch for a breakout continuation setup.
   
   2. Rejection from 85,157
   • With bearish candle patterns → Short opportunity.
   • Initial targets: 84,859 → 84,600.
   
   3. If price trades between 84,859–85,157
   • Expect range-bound behavior.
   • Trade only extremes with confirmation:
   – Buy near 84,859,
   – Sell near 85,157.
   

📌 Educational Note:
Flat openings reveal direction through early structure shifts. The key is waiting for higher-lows (bullish) or lower-highs (bearish).

📉 3. GAP-DOWN OPENING (300+ points)

Gap-down openings near or inside the Last Intraday Support (84,335) require patience and caution.

1. 
   1. If price opens inside 84,335 Support Zone
   • Do NOT short blindly—this is a reaction zone.
   • Look for reversal signs: hammer, bullish engulfing, CHoCH.
   • If reversal confirmed → Long toward 84,859 → 85,157.
   
   2. If price breaks below 84,335 on opening
   • Avoid chasing breakdowns.
   • Wait for a retest of 84,335.
   • If rejection appears → Short entry toward 84,150 → 84,000.
   
   3. Strong recovery after Gap-Down (V-Shape)
   • If price quickly reclaims 84,335, buyers are active.
   • Above 84,859 → Trend shifts bullish intraday.
   • Upside targets: 85,157 → 85,320.
   

📌 Educational Note:
Gap-downs often act as liquidity sweeps—smart money absorbs selling pressure before pushing price upward.

🛡 RISK MANAGEMENT TIPS FOR OPTIONS TRADERS

1. 
   1. Avoid first 5–10 minutes of trading after big gap openings.
   Market needs time to stabilize.
   
   2. Never buy OTM options after a big gap.
   Premium decay will eat your trade.
   
   3. Use price action–based stops instead of premium-based SL.
   
   4. Position sizing rule:
   Risk ONLY 1–2% of your capital per trade.
   
   5. High IV → Prefer option selling.
   Low IV → Option buying becomes efficient.
   
   6. Book profits near key levels (e.g., 84,859, 85,157, 85,320, 85,433).
   
   7. Avoid revenge trading or entering against strong trends without confirmation.
   

📌 SUMMARY & CONCLUSION

• Bullish bias above 85,320–85,433, with potential toward 85,818.
• Range-bound behaviour likely between 84,859–85,157.
• High-probability reversals expected from 84,335 on gap-down.
• Wait for retests and confirmations before entering trades.
• Follow structure strictly—levels decide the direction.

⚠ DISCLAIMER

I am not a SEBI-registered analyst.
All information above is for educational purposes only and not investment advice.
Markets are dynamic—always apply your own judgment and risk management.