Trading Set-up for Banknifty on 02/06/2021
1. SET UP to Trade Nifty Bank.
- Trend: (⇑-Up Trend)
Banknifty has not been Perfectly trending in either direction Yet. But for today, it has some Negative trend bias and Seller/Supplay Likely to dominate.
- Market set up :(⇓- Opposite to trend )
Today Bank nifty ‘Demand/Supply’ setup is Supportive for Selling. So Today is a Good setup to Sell. Today, you should look to sell.
- Bottom Line :
The Trend is Down,But it not perfectly trending market yet and It’s also Good set up to Sell.
2. Sentiments
- Global markets:
Dow Jones future is currently trading - Flat to Positive & Other Asian market is currently trading - Negative.
- What is on News/TV
If yesterday Low is Key,It it holds then minor bounce can be expected. FII sells due to profit Booking on last day.
- Positive News-flow::
Midcap- Unlock process will help the Selective midcaps. covid cases shows continuous decline.
- Negative News-flow::
FII number is sell- minor negative.
- Bottom Line:
Overall News & Market Participants Sentiment is Mildly Positive which is not supportive for Downmove.
3. Game Theory ( Tug of war between Buyer & Seller)
- From where New Buying comes?
A.Since sentiments are Mild Positive, the Outside Trader will Buy with very Mild Force.
- From where new selling come?
A.Since Sentiments are Mild Positive, Outside Trader may Go short on Rise Only. B. Trader’s with Long Position- “Less” chance for Long unwind today.
4. How trader should trade Today (In Bank Nifty)
- Set Up:
Today Bank nifty ‘Demand/Supply’ setup is Supportive for Selling. So Today is a Good setup to Sell. Today, you should look to sell.
- Sentiments:
Overall News & Market Participants Sentiment is Mildly Positive
- Trading Edge:
Today Trading set up: By Analysing market participants positioning & Ongoing news / sentiments it is clear that Today’s Market don’t present Systematic directional move in Either directions, So One should Stickly enter at Entry price & exit at First Fair price with define Stop Loss as given below…
- Entry on Edge:
Sell-Between- 35508-35698
- Exit on Fair price:
Book Profit & Long- 35163 - 35139
- Bottom Line for Day :
Trade with Low volume as Both sides Volatility can be assumed for day. A Compulsive trader can take entry with above levels with tight Stoploss & Be Quick in Booking profits for the day.
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