Trade Set up 10 Sep 2019



  • 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 : (⇔- neutral to trend )
  • Today Bank Nifty Force set up is " mild supportive" for Buying.
  • F&O trader position: (⇑ - Basis rise )
  • The difference between bank nifty's future and spot (Basis) is now 111 points. The basis has risen from last day about 2 points.
  • Bottom Line :
  • The Trend is changing to the upside.>> Just ok set up to buy( May Avoid trading)>> Basis rise.

2. sentiments

  • Global markets:
  • Asia is in red + Dow is positive!
  • what is news on TV
  • USA equity fall & More terrifs on china. Domestic MF fall slow down.
  • Positive newsflow:
  • Rupee has fallen enough! Now there will be stability!
  • Negative newsflow:
  • Bottom Line:
  • Sentments is mild 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 Mild Positive, the Outside trader will come and buy. B. Trader's with short Position-less chance for short covering today.
  • From where new selling come:
  • A. Outside trader may not short sell 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 "NOT supportive" for Buying. So, Today is "Not OK "set up to Buy. But since, It is open at Gap down, It may creat a opportunity for me.
  • Sentiments:
  • sentments is mild positive
  • EDGE:
  • My today trading edge points clubbing setup & sentiments is 30 .Today, I don't have any edge ( NO EDGE),But Gap down can increse my EDGE.
  • ENTRY on edge:
  • Since I am expecting to maket to open gap down, I will buy at open.
  • EXIT:
  • Once I get my entry, i will hold position for 50-70 profit on upside!

Abhikumar Patel