Trading Set Up for Banknifty on 13/04/2020

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1

1. SET UP to Trade Nifty Bank.

  • Trend: (⇔ - Notdefine trend)
    • Market is not trending anywhere, But there is mild Bies on Upside.
  • Market set up :(⇔- Neutral to trend)
    • Today Bank Nifty Force set up is Not Supportive for Buying. So, Today is Bad set up to buy. You should only buy on Dips or lower range.
  • Bottom Line :
    • The Trend is Not define, But last day negative move can support today Up-move and give follow up on upside>> Bad set up to Buy.

    2. Sentiments

    • Global markets:
      • Dow Jones future is Negative & Hang Seng is Negative.
    • What is on News/TV
      • Buy on dips. Pullback is not ending as of now
    • Positive News-flow::
      • USA stocks rallied. & FII are buying.
    • Negative News-flow::
      • Lockdown is set to continue. New Cases rising in China & sigapore. Crude is Up.
    • Bottom Line:
      • Sentiments is Mild Negative. Sentiments are not supportive of on going Trend.

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

    • From where New Buying comes?
      • A. Since Sentiments are mild Negative, the Outside Trader will Buy on DIPS only. B. Trader's with a short Position-"less" chance for short covering today.
    • From where new selling come?
      • A. Since Sentiments are mild Negative, Mild new short selling expected from outside Traders.
    • Will buyers buys on dips?:
      • On Fall- Since the Trend is 'Not Define', 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 wanted 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. What I am going to do today (In Bank Nifty)

    • Set Up:
      • Today Bank Nifty Force set up is Not Supportive for Buying. So, Today is Bad set up to buy. You should only buy on Dips or lower range.
    • Sentiments:
      • Sentiments is Mild Negative.
    • Trading Edge:
      • My Today Trading edge points clubbing Setup & Sentiments is 39 Point. Today, I 'don't have Any Edge', So I will ' Not Trade Today'.
    • Entry on Edge:
      • Buy- When BN is Between 19530-19699
    • Exit on Fair price:
      • Fair Price for Today's Trade is at least 20027 - 20070
    • Bottom Line for Day :
      • Dont trade -Take a day off
      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