1. SET UP to Trade Nifty Bank.
Trend: (⇔ - Notdefine trend) Market is not trending anywhere.But there is Mild bies on downside.
Market set up :(⇑- Supportive to trend) Today Bank nifty Force set up is Supportive for Selling. So Today is Good set up to Sell. Today, you should look to sell.
Bottom Line : The Trend is Not define, But Last day Positive move can support today's down-move & give follow up on downside >> Good set up to Sell.
2. Sentiments
- Global markets:
Dow Jones future is Flat to Positive & Hang Seng is Negative.
- What is on News/TV
Banknifty & Nifty making Lower low & lower high every day, It is Sell on relly market.
- Positive News-flow::
HUL supplay chain issue almost resolve.
- Negative News-flow::
Market is tapid. Asian market is not picking up. Covid case are rising at rising pace. therefore lockdown worry & economic activity will continute to suffer. Yes bank Losses widen.
- Bottom Line:
Sentiments is very Much Negative. Sentiments are also supportive of on going Trend.
3. Game Theory ( Tug of war between Buyer & Seller)
- From where New Buying comes?
A. Since Sentiments are Very Much Negative, the Outside Trader will postpone their Buying.
- From where new selling come?
A. Since Sentiments are very much Negative, Aggressive short Selling expected from outside Trade. B. Trader's with Long Position- "Great" chance for Long unwind today.
- Will Seller sell on rise?
On rise-Since trend is not perfect!, There will be a higher number of Sellers at higher end which propels the market to go down on the intraday rise. Moreover, on Rise, a Buyer who wanted to buy has already bought. So Selling on the rise is a Dominant Strategy as more Seller & lack of Buyer on rise of this Downtrend Trending market
4. What I am going to do today (In Bank Nifty)
- Set Up:
Today Bank nifty Force set up is Supportive for Selling. So Today is Good set up to Sell. Today, you should look to sell.
- Sentiments:
Sentiments is very Much Negative.
- Trading Edge:
My Today Trading edge points clubbing Setup & Sentiments is -86 Point. Since My Trading Edge is less than -70, I will be only looking for shorting opportunity for Today.
- Entry on Edge:
Sell- When BN is Between 19524-19640
- Exit on Fair price:
Fair Price for Today's Trade is at least 19386 - 19269
- Bottom Line for Day :
PSDAY(Basket Trade)- Enter at fair price & Hold you Position atleast till fair price-Book part profit at fair price & rest Position let it run till full day
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
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