Trade set up 21 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 again a "neutral" for Buying. -So, Today "Just Ok "set up to buy. Today, you should "avoid" trading. as Tomorrow is holiday & peoepl may not trade with huge force.
  • F&O trader position: (⇑ - Basis rise)
  • The difference between bank nifty's future and spot (Basis) is now 57 points. The basis has risen from last day about 16.25 points.
  • Bottom Line :
  • The Trend is up.>> Ok set up to buy (Avoid trading)>> Basis rise. Overall, set up is Ok to buy, but dont overstay you position on market.

2. sentiments

  • Global markets:
  • Asian market is flat + Dow future is flat
  • what is news on TV
  • Wall street continue is climb, Asian indices is not showing follow through.
  • Positive newsflow:
  • Rupess is going to stronger today, It wil have positive impact on Yeild & lower inflation. Banknifty got its mojo back!
  • Negative newsflow:
  • Nothing as such for a day!
  • 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.
  • From where new selling come:
  • A. Outside trader may not short sell today. B, May be long winding will happen today which can Limit upside.
  • 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 "neutral" for Buying. -So, Today "Just Ok "set up to buy. Today, you should "avoid" trading.
  • 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:
  • You should buy , if bank nifty open flat or it will fall 30-50 point from Open.
  • EXIT:
  • Today Your profit expectation should be only 30-40 points on upside. Once You get entry at Your preffred level, You should will book profit for 30-40 points only, ( You should not buy on high level today)

P.S- I may not trade today.

Abhikumar Patel
[email protected]