1. SET UP to Trade Nifty Bank.
- Global markets: Dow Jones future is Positive & Hang Seng is Negative.
- What is on News/TV Currently "Make or break " zone.
- Positive News-flow::
- Negative News-flow:: Market may test lower end boundry today, But the breakdown may not be that much susainbale - due to Budget. Market Sentiments is also weak for now.
- Bottom Line: Sentiments is Mild Negative. Sentiments are not supportive of on going Trend.
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 not perfect!, There will be a higher number of Sellers at higher end which propels the market to go down on the intraday rise. Moreover, on Rise, 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 rise of this Downtrend Trending market
4. what I am going to do today (In bank nifty)
- Set Up: Today Bank Nifty Force set up is Not Supportive for Selling. So, Today is Bad set up to Sell. You should Avoid Selling.
- Sentiments: Sentiments is Mild Negative.
- Trading Edge: My Today Trading edge points clubbing Setup & Sentiments is -55 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 30682.05
- Exit on Fair price: Fair Price for Today's Trade is 30453.05