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 Buy on dips.
- F&O trader position: (⇓- Basis is down ) The difference between bank nifty's future and spot (Basis) is now 40 points. The basis has fallen from last day about -39 points.
- Bottom Line : The Trend is up.>> Ok set up to buy (Avoid trading)>>Basis fall.
- Global markets: Asian market is cheerful & positive+ Dow future mild positive
- what is news on TV All currency turmoil put back- good thing
- Positive newsflow: New nagative news on rupess is stop , Crude has been falling ,
- Negative newsflow:
- Bottom Line: sentments is mild positive
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- OK 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
- Will Seller sell on rise? Yes, on major rise, they may come.
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 BUY on DIPs only. Dont chase open.
- Sentiments: sentments is mild positive
- EDGE: My today trading edge points clubbing setup & sentiments is 65 .Since my trading edge is more than 50, I will look for buying opportunity only.
- ENTRY on edge: I will buy- I will Buy on DIPs only today aroun 70 point dips in Banknifty. ( considring Bank nifty will open 120+ up)
- EXIT: Once I get entry at My preffred point, I will wait for 100+ point to book profit.