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 rise ) The difference between bank nifty's future and spot (Basis) is now 71 points. The basis has risen from last day about 49 points.
- Bottom Line : The Trend is changing to the downside.>> GOOD set up to SELL>> But Basis rise.
2. sentiments
- Global markets: Asian market is down + Dow future is Mild Positive to flat ,
- what is news on TV Donald trump impeachment, then market crash Is going on! , profit taking on BN is continue at open, but half day recovery possible.
- Positive newsflow: If yesterday low is defended, then High chance of short covering!
- Negative newsflow: Donal impeachment , Crude is climbe higher, Rupee at low point last day, July GST is subdue!
- 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 buyers buys on dips?: Yes, Since trend has not chnaged to downside with hugh confirmation, Buyer will come and buy.
- 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 -5 .Today, I don't have any edge ( NO EDGE), so I will NOT TRADE AT ALL..
- ENTRY on edge: Edge is not supportive on short side for me. So I will not trade on short side today.
- EXIT: Not applicable!
Abhikumar Patel
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