Trade Set up 20 AUG 2018



  • 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.

2. sentiments

  • 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.

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1 Like

Same thinking I had, after some gap up in Bank Nifty, wait for profit booking in first few minutes, and then go long at the dip for intraday.

My only doubt is since the gap up will cross 11500 (previous resistance), will we see a dip after all? Or will there be a ferocious short covering and we see no dip?

Let the market tell us :slight_smile:

Well, your thought is also very much organized!

Since Market was firing on last 2-3 days, again today is 150+ up. It does not make sense to buy.

( If dips come, then It can be considered as DOMINANT strategy to buy where One have high chance of profit than this current level)

I think there is more juice left, markets have just started ignoring INR hype, Turkey nonsense, etc.

We saw correction of 200-300 Bank nifty just few days ago, so atleast 500-700 upside I am expecting based on the trend

Same like RBI policy hike two weeks back, we saw 300 points down, then jump of 700 points

So my positional target is 28500-28600 minimum (if u already hold BANK NIFTY).

But to enter intraday or not is dicey you are right, need to find good entry point to add another lot.