1. SET UP to Trade Nifty Bank.
- Trend:(⇓ - downtrend) " Bank Nifty is in the 2nd phase of bearish Trend. So, Supply is Still in control of the market today. Seller will have their Mild dominance over demand. "
- Market set up :(/⇔- Neutral 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.
- F&O Trader position: (⇓- Basis is down ) The Difference between Bank Nifty future and spot (Basis) is now 73 Points. The Basis has fallen from last day about -23 points.
- Bottom Line : The Trend is down.>> Good set up to Sell.>>Basis fall.
- Global markets: Dow future is Mild up+ Asia is very much in positive.
- What is on News/TV Market weighdown by debt woes & market correct before it move higher!
- Positive News-flow:: Global market Positive due to trade deal, But again india may not major benificial.
- Negative News-flow:: Crude has inch up + PAIN in debt market as balanced sheet are not trust worthy
- Bottom Line: Sentiments is Mild Negative. Sentiments is also supportive to Downtrend.
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.
- From where new selling come? A. Since Sentiments are mild Negative, Mild new short selling expected from outside Traders. B. Trader's with Long Position- "Less" chance for Long unwind today.
- Will Seller sell on rise? On rise-Since Trend is Down, There will be a higher number of Sellers at higher end which propels the market to go down from the intraday rise. Moreover, on Rising, 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 rising of downtrend 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 Mild Negative.
- Trading Edge: My Today Trading edge points clubbing Setup & Sentiments is -63 Point. Since My Trading Edge is less than -50, I will be only looking for shorting opportunity for Today.
- Entry on Edge: Sell- When BN is above 26786.25
- Exit on Fair price: Fair Price for Today's Trade is 26653.25
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.