Trade set up for 14 aug 2018



  • Trend: (⇑-Up Trend )
  • Bank Nifty is in the Mid (2nd) 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. -
  • F&O trader position: (⇑ - Basis rise )
  • The difference between bank nifty's future and spot (Basis) is now 76.25.points. The basis has risen from last day about 33.points.
  • Bottom Line :
  • The Trend is up.>> Ok set up to buy (Buy on dip )>> Basis rise.

2. sentiments

  • Global markets: ( ⇑-Positive/⇓-Negative/⇔ flat)
  • The Asian market is flat + Dow future is positive
  • what is news on TV
  • Asian indices rally, Yen, and dollar fall a bit, the Short covering is possible today.
  • Positive newsflow:
  • July inflation number is much lower and big trigger for yield, so Bank could be on fire!
  • Negative newsflow:
  • On high, People will tend to sell.
  • 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

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 75 .Since my trading edge is more than 50, I will look for buying opportunity only.
  • ENTRY on edge:
  • Buy On minor dips of 30/40 point in bank nifty at open
  • EXIT:
  • Book profit on bank nifty once it cross 100+