Trading Set Up for Banknifty on 26/08/2019

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1. SET UP to Trade Nifty Bank.

  • Trend:
    • Market is not trending anywhere, But there is mild Bies on Upside.
  • Market set up:
    • Today Bank nifty Force set up is Supportive for Buying. So Today is Good set up to buy. Today, you should look to Buy.
  • Bottom Line :
    • The Trend is Not define, But last day negative move can support today Up-move and give follow up on upside>> Good set up to Buy.

    2. Sentiments

    • Global markets:
      • Dow Jones future is Extreem Nagative & Hang Seng is Extreem Nagative.
    • What is on News/TV
      • Global Vs domestic!! Mostly Bull may have charged! Shorts may cover today!
    • Positive News-flow::
      • FPI tax rollback, Index heavy stock should rise. Auto and PSB also on Fire!
    • Negative News-flow::
      • Fall in global market, HSI maket is down 800 points.
    • Bottom Line:
      • Sentiments is Mild Positive. 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 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 will on 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 Supportive for Buying. So Today is Good set up to buy. Today, you should look to Buy.
    • Sentiments:
      • SentIments is Mild Positive.
    • Trading Edge:
      • My Today Trading edge points clubbing Setup & Sentiments is 76 Point. Since My Trading Edge is more than 70, I will look for Buying Opportunity only.
    • Entry on Edge:
      • Buy- When BN is below 26898.65
    • Exit on Fair price:
      • Fair Price for Today's Trade is at least 27146.65
    • Stoploss:
      • One you get a entry, You should follow 70/100 point stoploss, without fail.

      PS:- Since today, There is Two extreme Opposite news, you should Look to buy in First half only!

      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 Traders.

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