Trading Set-up for Banknifty on 02/06/2021

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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