Trading Set Up for Banknifty on 21/04/2020

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.
  • Bottom Line :
  • The Trend is down.>> Good set up to Sell.

    2. Sentiments

    • Global markets:
    • Dow Jones future is Extremely Negative & Hang Seng is Extremely Negative.
    • What is on News/TV
    • Bear market rally is getting over...
    • Positive News-flow::
    • WTI Crude is near zero. Good for crude sensative stocks,
    • Negative News-flow::
    • USA stop all immigation. It is too negative for IT compnay. Not good for equities .
    • Bottom Line:
    • Sentiments is very Much 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 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 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 very Much Negative.
    • Trading Edge:
    • My Today Trading edge points clubbing Setup & Sentiments is -95 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 20272-20414
    • Exit on Fair price:
    • Fair Price for Today's Trade is at least 20102 - 19942
    • Bottom Line for Day :
    • PSDAY(Basket Trade)- Enter at fair price & Hold you Position atleast till fair price-Book part profit at fair price & rest Position let it run till full day
      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.

    Follow- Live Update


    I am bearish on banknifty

    So am i.

    ya of course , this market will kill lot of people , if any country will find medicine for corona virus market where its will go i dont know , there is some celebration will be there , i am keeping my foot in market very conservatively ,