Trade set up 06 Sep 2018

Creators
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1. SET UP to TRADE BANK NIFTY

  • Trend: (⇔ - Notdefine trend)
    • Bank nifty's downtrend seems to exhausting now. Buyers/ demand try to make a comeback & supply also gets reduce on further dips today.
  • Market set up : (⇑- Supportive to trend )
    • 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.
  • F&O trader position: (⇓- Basis is down )
    • The difference between bank nifty's future and spot (Basis) is now 158 points. The basis has fallen from last day about -26points.
  • Bottom Line :
    • Th downtrend seems exusted! >>best set up to buy>>Basis fall.

2. sentiments

  • Global markets:
    • asian market is mild nagative+Dow future is positive
  • what is news on TV
    • Currency is up!! so selling exustion in rupee, thus very positive!
  • Positive newsflow:
    • Crude is 77! Rupee and Bond should recover!
  • Negative newsflow:
    • FII shorted so much!
  • Bottom Line:
    • Sentments is very much positive. Sentiments is also supportive to Up trend

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- GOOD 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 "very much Supportive" for Buying. So, Today is "Great set up" to buy. Today, you should not miss the opportunity on the upside.
  • Sentiments:
    • sentments is very much positive
  • EDGE:
    • My today trading edge points clubbing setup & sentiments is 75 .Since my trading edge is more than 50, I will look for buying opportunity only.
  • ENTRY on edge:
    • I will Buy on first dips today in maket. I will not miss buy trade!
  • EXIT:
 

Abhikumar Patel
Twitter

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