Trading Set Up for Banknifty on 23/04/2020

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1. SET UP to Trade Nifty Bank.

  • Trend: (⇔ - Notdefine trend)
    • Market is not trending anywhere, But there is mild Bies on Upside.
  • Market set up :(⇔- Neutral to trend)
    • Today Bank Nifty Force set up is Not Supportive for Buying. So, Today is good st up to buy on dips.
  • Bottom Line :
    • The Trend is Not define, But last day negative move can support today Up-move and give follow up on upside>> Bad set up to Buy.

    2. Sentiments

    • Global markets:
      • Dow Jones future is Flat to Negative & Hang Seng is Flat to Negative.
    • What is on News/TV
      • we could see some Short covering & FII selling has come down & FII data is bullish. Financial can give big moves.
    • Positive News-flow::
      • Stability come in Crude market as well as other markets.
    • Negative News-flow::
      • More corona virus cases & Big Coporate askign for salary cuts.
    • Bottom Line:
      • Sentiments is Mild Positive. Sentiments are supportive of on going Trend.

    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 a short Position-"less" chance for short covering today.
    • From where new selling come?
      • A.Since Sentiments are Mild Positive, Outside Trader may Go short on Rise Only.
    • Will buyers buys on dips?:
      • On Fall- Since the Trend is 'Not Define', There will be a moderate number of Buyers at the lower end which propels the Market to go up from Dips. Moreover at Dips Sellers who wanted to sell has sold off. So buying on dips is the Dominant Strategy as More Buyer and lack of Seller at the bottom of This Non-Trending Trend

    4. What I am going to do today (In Bank Nifty)

    • Set Up:
      • Today Bank Nifty Force set up is Not Supportive for Buying. So, Today is Bad set up to buy. You should only buy on Dips or lower range.
    • Sentiments:
      • SentIments is Mild Positive.
    • Trading Edge:
      • My Today Trading edge points clubbing Setup & Sentiments is 65 Point. Today, I 'don't have Any Edge', So I will ' Not Trade Today'.
    • Entry on Edge:
      • Buy- When BN is Between 19587-19715
    • Exit on Fair price:
      • Fair Price for Today's Trade is at least 19964 - 20064
    • Bottom Line for Day :
      • Enter only at fair price zone
      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]

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