Trading Set Up for Banknifty on 02/07/2019

Technical Analysis
1

1. SET UP to Trade Nifty Bank.

  • Trend: (⇑-Up Trend )
    • Bank Nifty is in the 2nd phase of Bullish Trend. Buyers/ demand are Still in control of a market today.
  • Market set up :(⇑- Supportive to trend)
    • Today Bank nifty Force set up is Very Much Supportive for Buying. So Today is Great set up to buy. Today, you should not miss the opportunity on the upside.
  • F&O Trader position: (⇓- Basis is down )
    • The Difference between Bank Nifty future and spot (Basis) is now 124 Points. The Basis has fallen from last day about -39 points.
  • Bottom Line :
    • The Trend is up.>> Great set up to Buy.>>Basis fall.

    2. Sentiments

    • Global markets:
      • Dow Jones future is Positive & Hang Seng is Positive.
    • What is on News/TV
      • Rang has Brokeout on Upside. & ADV/DEC is favorable to advances. More short covering on way.
    • Positive News-flow::
    • Negative News-flow::
      • Not all well in economy (auto sales slowdown /GST growth slow down)
    • Bottom Line:
      • Sentiments is Mild Positive. Sentiments is also supportive to Uptrend.

    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. B. Trader's with short Position- "Good" chance for short covering today.
    • From where new selling come?
      • A.Since Sentiments are Mild Positive, Outside Trader will on short on Rise Only.
    • 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

    4. what I am going to do today (In bank nifty)

    • Set Up:
      • Today Bank nifty Force set up is Very Much Supportive for Buying. So Today is Great set up to buy. Today, you should not miss the opportunity on the upside.
    • Sentiments:
      • SentIments is Mild Positive.
    • Trading Edge:
      • My Today Trading edge points clubbing Setup & Sentiments is 102 Point. Since My Trading Edge is more than 70, I will look for Buying Opportunity only.
    • Entry on Edge:
      • Buy- When BN is below 31468.2
    • Exit on Fair price:
      • Fair Price for Today's Trade is at least 31615.2
      It's Significant intellectual property & New way to Analyse the Market which use Unconventional Instruments Like Behaviour Finance & Game Theory for getting clear & Unbies idea for Active Derivative Traders.

    Abhikumar Patel
    Twitter https://twitter.com/abhi_9392