Trading Set Up for Banknifty on 05/09/2019

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1

1. SET UP to Trade Nifty Bank.

  • Trend:
    • Bank nifty's downtrend seems to exhausting now. Buyers/ demand try to make a comeback & supply also gets reduce on further dips today.
  • Market set up:
    • Today Bank nifty Force set up is Supportive for Buying. So Today is Good set up to buy. Today, you should look to Buy.
  • Bottom Line :
    • The Trend is Down, But it is end of downtrend. The Trend can change itself to Upside Today.>>Good set up to Buy.

    2. Sentiments

    • Global markets:
      • Dow Jones future is Extremely positive & Hang Seng is Extremely positive.
    • What is on News/TV
      • Last day Low will hold!
    • Positive News-flow::
      • Hongkong issue & Trade was are proressing very positively
    • Negative News-flow::
      • RBI new rule of Linking loan with outer side banchmark!
    • Bottom Line:
      • Sentiments is on Eupohria level. Sentiments is also supportive to upmove.

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

    • From where New Buying comes?
      • A. Since sentiments are Great, the Outside Trader will Buy with Great amount of Aggression. B. Trader's with a short Position-"Moderate" chance for short covering today.
    • From where new selling come?
      • A. Since Sentiments are Great, Outside Traders will not try to short sell at all today.
    • Will there be Resistance from Seller sell on rise?
      • There may not be any resistance from Seller side as most have sold their position

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

    • Set Up:
      • Today Bank nifty Force set up is Supportive for Buying. So Today is Good set up to buy. Today, you should look to Buy.
    • Sentiments:
      • Sentiments is on Euphoria Level.
    • Trading Edge:
      • My Today Trading edge points clubbing Setup & Sentiments is 101 Point. Since My Trading Edge is more than 70, I will look for Buying Opportunity only.
    • Entry on Edge:
      • Buy- When BN is below 27178.85
    • Exit on Fair price:
      • Fair Price for Today's Trade is at least 27372.85
    • Stoploss:
      • One you get a entry, You should follow 70/100 point stoploss, without fail.
      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 Traders.

    Abhikumar Patel
    Twitter