Nifty & Bank Nifty strategy contest thread for the week ending October 31, 2019

Nifty & Bank Nifty discussions
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Trading Set Up for Banknifty on 04/11/2019

1. SET UP to Trade Nifty Bank.

  • Trend:
    • Bank Nifty is in the 2nd phase of Bullish Trend. Buyers/ demand are Still in control of a market today.
  • Market set up:
    • Today Bank nifty Force set up is Very Much Supportive for Buying. So Today is Great set up to buy. Today, you should not miss the opportunity on the upside.
  • Bottom Line :
    • The Trend is up.>> Great set up to Buy.

    2. Sentiments

    • Global markets:
      • Dow Jones future is Positive & Hang Seng is Positive.
    • What is on News/TV
      • EM has been outperforming after FED moce. FII is betting on EMs. F&O data indicate new high this week. (11840 hold, then new high) 30500 cross, then poweful move.
    • Positive News-flow::
      • Us Jobs growth & lose fiscal policy in world over. good consumer sell. FII are Buying from last many days.
    • Negative News-flow::
      • Whole sale auto sales are bad. GST collection is down by 5%.
    • Bottom Line:
      • Sentiments is very Much Positive. Sentiments is also supportive to Uptrend.

    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 Good amount of aggression. B. Trader's with short Position- "Good" chance for short covering today.
    • From where new selling come?
      • A. Since Sentiments are Vey much Positive, Outside Traders will not try to short sell at all today.
    • Will there be support from 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 Very Much Supportive for Buying. So Today is Great set up to buy. Today, you should not miss the opportunity on the upside.
    • Sentiments:
      • Sentiments is very Much Positive.
    • Trading Edge:
      • My Today Trading edge points clubbing Setup & Sentiments is 113 Point. Since My Trading Edge is more than 70, I will look for Buying Opportunity only.
    • Entry on Edge:
      • Buy- When BN is Between 30550-30457
    • Exit on Fair price:
      • Fair Price for Today's Trade is at least 30661.55
    • Stoploss:
      • One you get a entry, You should follow 70/100 point stoploss, without fail.
      It's Significant intellectual property & New way to Analyse the Market which use Unconventional Instruments Like Behaviour Finance & Game Theory for getting clear & Unbies idea for Traders.

    Abhikumar Patel
    Twitter https://twitter.com/abhi_9392
    [email protected]

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    Thank you all for participating! :raised_hands:

    This winner for the first week is @abhi9392. Congratulations, Abhi! :slight_smile: We’ll get in touch with you via PM for the award. The contest for the next week (ending November 7th is now live here.

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