Trade set up for 17 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 : (⇑- Supportive to trend )
  • Today Bank Nifty Force set up is "neutral" for Buying. -So, Today "Ok "set up to buy.
  • F&O trader position: (⇑ - Basis rise )
  • The difference between bank nifty's future and spot (Basis) is now 80 points. The basis has risen from last day about 24 points.
  • Bottom Line :
  • The Trend is up.>> Ok set up to buy>> Basis rise.

2. sentiments

  • Global markets:
  • Asian market is very much positive+ Usa future also very much positive
  • what is news on TV
  • Turkish lira revover losses
  • Positive newsflow:
  • talk between USA & China restart, CRUDE is falling
  • Negative newsflow:
  • Rupee at 70 can be some worrysome.
  • Bottom Line:
  • sentments is very much positive

3. Game theory ( tug of war between buyer & seller)

  • From where New Buying comes?
  • A. Since sentiments are Vey much Positive, the Outside trader will Buy with very much aggression. B. Trader's with short Position- OK chance for short covering today.
  • From where new selling come:
  • A. Outside trader will not try to short sell at all 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.
  • Sentiments:
  • sentments is very much positive
  • EDGE:
  • My today trading edge points clubbing setup & sentiments is 110 .Since my trading edge is more than 50, I will look for buying opportunity only.
  • ENTRY on edge:
  • I Will buy Bank nifty at open.
  • EXIT:
  • After my entry, I will hold my long position for full day or book profit only if bank nify gain by 150+ from my entry point.

P.S- I actully trade my above set up.

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1 Like

Great set up idea! It works for my trade today!


1 Like