1. SET UP to TRADE BANK NIFTY
- Trend: (⇔ - Notdefine trend) Bank Nifty is in the last (3rd) phase of Bullish Trend. Here seller/supply try to make a comeback & demand also gets reduce on rising.
- Market set up : (⇑- Supportive to down trend ) Today Bank Nifty Force set up is "Supportive" for Selling. So, Today is "Good set up" to Sell. You should look for Selling opportunity.
- F&O trader position: (⇑ - Basis rise/⇔- Basis is flat/⇓- Basis is down ) The difference between bank nifty's future and spot (Basis) is now 55points. The basis has fallen from last day about -20 points.
- Bottom Line : The Trend is changing to the downside.>> GOOD set up to SELL>>Basis fall.
- Global markets: ( ⇑⇔ flat) Asian marke is mild positive + Dow future is 100+ up ( very much positive)
- what is news on TV Sharp recovery in Asian market may prompt or market to go up
- Positive newsflow: Crude fall
- Negative newsflow: Rupee fall & trade deficit widen 5 years high, Current account deficit is 3 years high,
- Bottom Line: sentiments is mild negative
3. Game theory ( tug of war between buyer & seller)
- From where New Buying comes? A. Since sentiments are mild negative, the Outside trader may not buy today.
- From where new selling come: A. Outside trader-Mild new short selling expected from outside traders. B. Trader's with Long Position- GOOD chance for Long unwind today.
- Will Seller sell on rise? On rise-Since trend is Down, There will be a higher number of sellers at higher end which propels the market to go down on the intraday rise. Moreover, on Rise, a buyer who wanted to buy has already bought. So Selling on the rise is a dominant strategy as more seller & lack of buyer on rising of downtrend market
4. what I am going to do today (In bank nifty)
- Set up: Today Bank Nifty Force set up is "Supportive" for Selling. So, Today is "Good set up" to Sell. You should look for Selling opportunity.
- Sentiments: sentiments is mild negative
- EDGE: My today trading edge points clubbing setup & sentiments is -40 .Today, I don't have any edge ( NO EDGE), so I will NOT TRADE AT ALL. For compulsive trader, You can short sell , but book profit.
- ENTRY on edge: Will look for selling opportunity at open or minor rise.
- EXIT: Will book proft 100 point below from open