Trade set up for 09 Aug 2018

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1. SET UP to TRADE BANK NIFTY

  • Trend: (⇑-Up Trend)
    • Bank Nifty is in the Mid (2nd) phase of Bullish Trend. Buyers/ demand are Still in control of a market today.
  • Market set up : (/⇔- neutral to trend)
    • Today Bank Nifty Force set up is "neutral" for Buying. -So, Today "Just Ok "set up to buy.
  • F&O trader position: (/⇔- Basis is flat/ )
    • The difference between bank nifty's future and spot (Basis) is now 65 points. The basis has fallen from last day about -7 points.
  • Bottom Line :
    • The Trend is up.>> Ok set up to buy (Avoid aggresive trading )>>Basis fall.

2. sentiments

  • Global markets: ( ⇑-Positive/)
    • Asian market are trading positive+ dow future is also trading positive
  • what is news on TV
    • FII buying is back, Crude is 72$ which is huge positive. Buy on dips market.
  • Positive newsflow:
    • China impose tax on import but market is totally ignoring the same which I seems big positive, FII buying is back.
  • Bottom Line: Sentiments is very much positive. Buy on dips is dominant strategy.

3. Game theory ( tug of war between buyer & seller)

  • From where New Buying comes?
    • A. Since sentiments are Vey much Positive, the Outside trader will Buy with very much aggression. B. Trader's with short Position- OK chance for short covering today.
  • From where new selling come:
    • A. Outside trader will not try to short sell at all today.
  • Will buyers buys on dips?:
    • On Fall- Since the Trend is up, There will be a higher number of buyers at the lower end which propels the market to go up from dips. Moreover, at dips sellers who wanted to sell has sold off. So buying on dips is the dominant strategy as More buyer and lack of seller at the bottom of uptrend market

4. what I am going to do today (In bank nifty)

  • Set up:
    • Today Bank Nifty Force set up is "neutral" for Buying. -So, Today "Just Ok "set up to buy.
  • Sentiments:
    • sentments is very much positive
  • EDGE:
    • My today trading edge points clubbing setup & sentiments is 100 .Since my trading edge is more than 50, I will look for buying opportunity only.
  • ENTRY on edge:
    • Buy at open or minor dips at open
  • EXIT:
    • Make sure, you book profit once BN cross 100+
 
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