1. SET UP to TRADE BANK NIFTY
- Trend: (/⇓ - downtrend) " Bank Nifty is in the Mid phase of bearish Trend. So, Supply is Still in control of market today. Seller will have their Mild dominance over demand. "
- Market set up : (⇑- Supportive to trend ) Today Bank Nifty Force set up is "Supportive" for Selling. So, Today is "Good set up" to Sell. You should look for Selling opportunity.
- F&O trader position: (⇑ - Basis rise ) The difference between bank nifty's future and spot (Basis) is now 195 points. The basis has risen from last day about 40 points.
- Bottom Line : The Trend is down.>>GOOD set up to SELL>> Basis rise.
2. sentiments
- Global markets: Asian market is flat + Dow future is also flat
- what is news on TV Bond and rupee maket provide the next direction!!
- Positive newsflow: Today is no fresh Bad news- is considered as good news!
- Negative newsflow: Crude Oil is boiling for india,so it could have nagative impact on rupee!!
- Bottom Line: Sentiments is mild negative. Sentiments are also supportive to on going trend.
3. Game theory ( tug of war between buyer & seller)
- From where New Buying comes? A. Since sentiments are mild negative, the Outside trader may not buy today.
- From where new selling come: A. Outside trader-Mild new short selling expected from outside traders. B. Trader's with Long Position- less chance for Long unwind today.
- Will buyers buys on dips?:
- Will Seller sell on rise? On rise-Since trend is Down, There will be a higher number of sellers at higher end which propels the market to go down on the intraday rise. Moreover, on Rise, a buyer who wanted to buy has already bought. So Selling on the rise is a dominant strategy as more seller & lack of buyer on rising of downtrend market
4. what I am going to do today (In bank nifty)
- Set up: Today Bank Nifty Force set up is "Supportive" for Selling. So, Today is "Good set up" to Sell. You should look for Selling opportunity.
- Sentiments: sentiments is mild negative
- EDGE: My today trading edge points clubbing setup & sentiments is -60 .Since my edge is less than -50m I will be only looking for shorting opportunity for today. But My EDGE is not significanly high. So incase, If i sell, I will book small profit.
- ENTRY on edge: Will Look for rupee and bond marker movment -If it is nagative even today, Then I will short. Otherwise,I may also go long on dips.
- EXIT: since I have sibjective trade today on both side trade, it is not possible to define exit.
Abhikumar Patel
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