Trading Set Up for Banknifty on 19/02/2019


#1

 

1. SET UP to Trade Nifty Bank.

  • Trend: (⇓-End of Down 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 :(⇓- Opposite 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.
  • F&O Trader position: (⇑ - Basis rise)
  • The Difference between Bank Nifty future and spot (Basis) is now 102 Points. The Basis has risen from last day about 29 points.
  • 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.>> Basis rise.

2. Sentiments

  • Global markets:
  • Dow future is Mild up+ Asia is also positive.
  • What is on News/TV
  • bad news in price last day, we should get breather today, Value investor rejoice to buy at this points , We are at support level , so second half really in market from short covering!!
  • Positive News-flow::
  • No Fresh nagative news
  • Negative News-flow::
  • FII seling is just not stopping.
  • Bottom Line:
  • Sentiments is very Much Positive. Sentiments are supportive for buying.

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 will on 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 very Much Positive.
  • Trading Edge:
  • My Today Trading edge points clubbing Setup & Sentiments is 112 Point. Since My Trading Edge is more than 50, I will look for Buying Opportunity only.
  • Entry on Edge:
  • Buy- When BN is below 26808.25
  • Exit on Fair price:
  • Fair Price for Today's Trade is 26902.25
 

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.

Abhikumar Patel
Follow - https://twitter.com/abhi_9392


#2

Your analysis is really long to read. Who has time for it in a busy world. But I will like it anyway, for the effort.


#3

Hey,

Just read Point no. 4- It may make your day. Look at entry and exit price.

I made 70 points today in BN today.


#4

Great work please post daily