1. SET UP to Trade Nifty Bank.
- 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