1. SET UP to TRADE BANK NIFTY
- 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 : (/⇓- opposite to trend ) Today Bank Nifty Force set up is "neutral" for Buying. -So, Today "Just Ok "set up to buy. Today, you should "avoid" trading on UPSIDE.
- F&O trader position: (⇑ - Basis rise/ ) The difference between bank nifty's future and spot (Basis) is now 72.points. The basis has risen from last day about 10.points.
- Bottom Line : The Trend is up.>> Ok set up to buy (Avoid buying)>> Basis rise. Set ups are favouring Strictly Buy on dips or mild short sell.
2. sentiments
- Global markets: ( ⇔ flat) Asian market is Flat as of now & USA future is also mildly positive.
- what is news on TV Today can be the stock specific day, Buy on dips market as of now, On higher level market facing resistance. Profit booking should come in which make market down for time being.
- Positive newsflow:
- Negative newsflow: Caution due to Mr. president's tweet on IRAN which indicates nothing but consolidating his stance on a trade war.
- Bottom Line: Sentiments are cautious due to market trading on very high level & global negative clues. Mild nagative sentiments.
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. B. Trader's with short Position- mild chance for short covering today.
- From where new selling come: A. Outside trader-Mild new short selling expected from outside traders.
- 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
- Will Seller sell on rise?
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 15 .Today, I don't have any edge ( NO EDGE), so I will NOT TRADE AT ALL on long side. I may look for shorting opportunity.
- ENTRY on edge: Sell on open
- EXIT: When BN fall 70/100+, then I will to book profit.
P.S- This the same trading set up which I use for my own trading.
Abhikumar Patel