Trading set up for 7th July 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.
  • Force: (⇓- opposite to trend )
  • IN Today Bank Nifty Force set up is "neutral" for Buying. -So, Today "Just Ok "set up to buy. Today, you should "avoid" trading on long side.
  • F&O trader position: (⇓- Basis is down )
  • The difference between bank nifty's future and spot (Basis) is now 61. The basis has fallen from last day about -19.points.
  • Bottom Line :
  • The Trend is up.>> Ok set up to buy (Avoid trading)>>Basis fall. Today Is not great set up to buy, it can be the "BULL trape". Set up may also favor mild selling on minor rise.
2. sentiments
  • Social Proof: ( ⇑-Positive/⇓-Negative/⇔ flat)
  • Asian maket good+ usa future is also good
  • Authority ( common knowledge) :
  • It is prudent to keep your position light, If some vulnerability in the market, the market will come down.
  • Positive:
  • " corporate bank like ICICI & axis Bank are on fire from last few day",
  • Negative:
  • HDFC bank rise deposite rate, it can have a rippling effect on rising rate on all capital good. Syndicate bank sahre week result.
  • Bottom Line: which information is most people looking?...positive or negative?...............
  • Momentum has been strong on the upside from last few days, but it can stall anytime, so be cautious today.
3. Game theory ( tug of war between buyer & seller)
  • New buying force:
  • A. Since sentiments are mild negative, the Outside trader may not buy today. + B. Trader's with short Position- OK chance for short covering today.
  • New selling force:
  • A. Outside trader-Mild new short selling expected from outside traders.
  • Buyer support 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 ( Use this when -Trend is not defined/trend forces are not supportive/ sentiment is not supportive to the main trend)
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:
  • sentiments is mild negative.
  • EDGE:
  • My today trading edge points clubbing setup & sentiments is 5 .Today, I don't have any edge ( NO EDGE), so I will NOT TRADE AT ALL..
  • ENTRY on edge:
  • For compulsive trader 1. sell on 100 rises on or Buy on 150 point dips from opening.
  • EXIT:
  • Any 50-70 point from your entry can be use to book profit.

Do let me know if this is useful for you to become a good trader!

P.S- This is the same set up which I use for my own trading.

Abhikumar Patel