Trade Set up for 28 Aug 2018

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1. SET UP to TRADE BANK NIFTY

  • Trend: (⇑-Up Trend )
    • Bank Nifty is in the Mid 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. Today, you should "avoid" trading as it can trap you on eitherside.
  • F&O trader position: (/⇓- Basis is down )
    • The difference between bank nifty's future and spot (Basis) is now 4.75.points. The basis has fallen from last day about -69 points.
  • Bottom Line :
    • The Trend is up.>> But Just Ok set up to buy (Avoid trading)>> and also Basis fall.

2. sentiments

  • Global markets:
    • Asian market is Positive + Dow future is Positive
  • what is news on TV
    • Global market is continue to rally, Bulls may remain in control.
  • Positive newsflow:
    • Doller is below 95 which is Positive for india
  • Negative newsflow:
    • High put call ratio & Crude oil price is very nagative for india.
  • 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. B. Trader's with short Position- OK chance for short covering today.
  • From where new selling come:
    • A. Outside trader-Mild new short selling expected from outside traders.
  • 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
  • Will Seller sell on rise?
    • Seller will come in to the market only if, global market weekens.

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. Today, you should "avoid" trading.
  • 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:
    • Buy on dips & sell on rise. ( Firs half- one should look to buy)
  • EXIT:
    • Once you get on trade, Book profit 50+ points. dont hold your position for Long.
 

Abhikumar Patel
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