1. SET UP to TRADE BANK NIFTY
- Trend: (⇔ - Notdefine trend) Bank Nifty's bullish trend seems exhausting now. Here seller/supply try to make a comeback & demand also gets reduce on rising.
- 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 is down ) The difference between bank nifty's future and spot (Basis) is now 21 points. The basis has fallen from last day about -35 points.
- Bottom Line : The Trend is changing to the downside.>> GOOD set up to SELL>>Basis fall.
2. sentiments
- Global markets: Asian market is down + Dow future is Mild nagative to flat ,
- what is news on TV Market is being boght on dips till now ,But today crude can be spoil spot.
- Positive newsflow:
- Negative newsflow: Crude is up
- Bottom Line: sentiments is mild negative
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- GOOD chance for Long unwind today.
- 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 -30 .Today, I don't have any edge ( NO EDGE), so I will NOT TRADE AT ALL.. **_But for compulsive trader, Sell at open and Book minor profit._**
- ENTRY on edge: Will short sell at OPEN it self. ( Considring 50 point gap up)
- EXIT: If Bank nifty fall more than 50+ then I book profit.
Abhikumar Patel
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