Trading Set Up for Banknifty on 15/04/2020

Creators
1

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 :(⇔- Neutral to trend)
    • Today Bank Nifty Force set up is Not Supportive for Selling. So, Today is Bad set up to Sell. You should only sell at Higher range Or rise
  • Bottom Line :
    • The Trend is Not define, But Last day Positive move can support today's down-move & give follow up on downside >> Bad set up to Sell.

    2. Sentiments

    • Global markets:
      • Dow Jones future is Negative & Hang Seng is Flat to Negative.
    • What is on News/TV
      • Market will have second Dips. FII booked some profit on thire long position.
    • Positive News-flow::
    • Negative News-flow::
      • Lockdown extention is bit negative.Minor spike in Covid cases. GDP cut for india.
    • Bottom Line:
      • Sentiments is very Much 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 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- "Less" 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 Not Supportive for Selling. So, Today is Bad set up to Sell. You should only sell at Higher range Or rise
    • Sentiments:
      • Sentiments is very Much Negative.
    • Trading Edge:
      • My Today Trading edge points clubbing Setup & Sentiments is -71 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 19442-19605
    • Exit on Fair price:
      • Fair Price for Today's Trade is at least 19126 - 18989
    • 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

    2 Likes