Trading set up for 16 Aug 2018



  • 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.

2. sentiments

  • 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

Abhikumar patel
[email protected]

Appreciate what you are trying to do.

When Reading this sentence I was Bullish.

Reading the next paragraph I went neutral.

Then ended up being bearish towards the end.

Please Make it more concise, so more traders can make use of your efforts. Best Wishes.

eg: BANKNIFTY , SHORT / LONG , entry and exit levels.


Thanks for Highlighting this.

Few Point which I would like to make to you , so you can use my trade set up slightly better.

  1. I will surely remove word like “3rd” phase and another technical term which I use for my personal understanding, It will be replaced by basic words which anyone can understand form tomorrow.

  2. There is 3 component of which make my trading set up
    A. market set up- which can be Bullish/bearish/neutral
    B. market sentiments- which can be again bullish/bearing/ neutral.
    C. buyer and seller position- what they likely to do

( All A/B/C are Independent, so it can be different) A. can be bullish, B. can be bearish. It possible.

3. MOST important thing is to LOOK the EDGE, If the edge is minus, I will look for short. If edge is positive, then I will look to BUY.

I would suggest, if you only read EDGE, it will/should make your day.