Trading Set-up for Banknifty on 03/06/2021

1. SET UP to Trade Nifty Bank.

  • Trend: (⇓-Downtrend)

Banknifty has not been Perfectly trending in either direction Yet. But for today, it has some positive trend bias and Buyer/demand Likely to dominate

  • Market set up :(⇓- Opposite to trend )

Today Bank nifty ‘Demand/Supply’ setup is Very Much Supportive for Buying. So Today is a Great setup to buy. Today, you should not miss the opportunity on the upside.

  • Bottom Line :

The Trend is Up, But it not perfectly trending market yet and It’s also a Great setup to Buy.

2. Sentiments

  • Global markets:

Dow Jones future is currently trading - Flat to Positive & Other Asian market is currently trading - Flat to Negative.

  • What is on News/TV

Make new all time high in first half is possibility.Short will cover today above 35500 and can go to 36000

  • Positive News-flow::

fii back in action with buy of 921. Thus nifty can bounce today. RIL will O2C demerger which also proprell nifty. Impresive rise in export.

  • Negative News-flow::

OIL import is down, thus minor negative.

  • Bottom Line:

Overall News & Market Participants Sentiments is very Much Positive which is also supportive for Upmove

3. Game Theory ( Tug of war between Buyer & Seller)

  • From where New Buying comes?

A. Since Sentiments are Vey Much Positive, the Outside Trader will Buy with Good amount of aggression. B. Trader’s with a short Position-“less” chance for short covering today.

  • From where new selling come?

A. Since Sentiments are Vey much Positive, Outside Traders will not try to short sell at all today.

  • Will buyers buys on dips?:

BUY ON BIG DIPS- Since the Trend is ‘Not perfecly Up’, There will be a moderate number of Buyers at the lower end which propels the Market to go up from Dips. Moreover at Dips Sellers who want to sell has sold off. So buying on dips is the Dominant Strategy as More Buyer and lack of Seller at the bottom of This Non-Trending Trend

4. How trader should trade Today (In Bank Nifty)

  • Set Up:

Today Bank nifty ‘Demand/Supply’ setup is Very Much Supportive for Buying. So Today is a Great setup to buy. Today, you should not miss the opportunity on the upside.

  • Sentiments:

Overall News & Market Participants Sentiments is very Much Positive

  • Trading Edge:

Today Trading set up: By Analysing market participants positioning & Ongoing news / sentiments it is clear that Today’s Market present Systematic directional move in UPSIDE, So One should Look to Buy without miss near Entry zone with Target between Fair price Given below.

  • Entry on Edge:

Buy-Between- 35616-35663

  • Exit on Fair price:

Book Profit- 35838 - 36015

  • 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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