Trading Set Up for Banknifty on 09/04/2020

Creators
1

1. SET UP to Trade Nifty Bank.

  • Trend: (⇑-Up 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 :(⇑- 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.
  • Bottom Line :
    • The Trend is Down, But it is end of downtrend. The Trend can change itself to Upside Today.>>Great set up to Buy.

    2. Sentiments

    • Global markets:
      • Dow Jones future is Flat to Negative & Hang Seng is Positive.
    • What is on News/TV
    • Positive News-flow::
      • Global Covid cases flatten out & FII buying has been resumed.
    • Negative News-flow::
      • Worries on Macros. NBFC/Bank sector is major issue.
    • Bottom Line:
      • Sentiments is Mild Positive. Sentiments is also supportive to upmove.

    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 may Go short on Rise Only.
    • Will 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 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 86 Point. Since My Trading Edge is more than 70, I will look for Buying Opportunity only.
    • Entry on Edge:
      • Buy- When BN is Between 18907-19082
    • Exit on Fair price:
      • Fair Price for Today's Trade is at least 19421 - 19601
    • Bottom Line for Day :
      • Trade in Direction of trend, But book Profit Near fair Price
      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