Trading Set Up for Banknifty on 20/02/2019


#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 is down )
  • The Difference between Bank Nifty future and spot (Basis) is now 54 Points. The Basis has fallen from last day about -49 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 fall.

2. Sentiments

  • Global markets:
  • Dow future is Mild up+ Asia is Very much positive.
  • What is on News/TV
  • Good time to buy Midcap & near support support level.
  • Positive News-flow::
  • Good news for banking share as NPA likey to reduced & also at 200 ema!
  • Negative News-flow::
  • Fii Still on sell mode.
  • Bottom Line:
  • Sentiments is on Eupohria level. Sentiments are not supportive down trend, so it can help upside movment today.

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 on Euphoria Level.
  • Trading Edge:
  • My Today Trading edge points clubbing Setup & Sentiments is 126 Point. Since My Trading Edge is more than 50, I will look for Buying Opportunity only.
  • Entry on Edge:
  • Buy- When BN is below 26870.85
  • Exit on Fair price:
  • Fair Price for Today's Trade is 26964.85
 

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.

Question:-How many of you Looking to read this Post daily?

Abhikumar Patel
Twitter https://twitter.com/abhi_9392


#2

Yes, Please post your analysis daily, if possible. It is helpful. Also, could you please let me know how you come to know these points and how you consider the fair price etc?


#3

I am reading this post daily.
If possible also conclude the day with result