Trading Set Up for Banknifty on 27/06/2019

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1. SET UP to Trade Nifty Bank.

  • Trend: (⇑-Up Trend )
    • Bank Nifty is 1st of Bullish Trend. Buyers/ demand are in Total control of the market today.
  • Market set up :(⇔- Neutral to trend)
    • Today Bank Nifty Force set up is Not Supportive for Buying. So, Today is Bad set up to buy. You should Avoid buying.
  • F&O Trader position: (⇓- Basis is down )
    • The Difference between Bank Nifty future and spot (Basis) is now 10 Points. The Basis has fallen from last day about -110 points.
  • Bottom Line :
    • The Trend is up.>> Bad set up to Buy.>>Basis fall.

    2. Sentiments

    • Global markets:
      • Dow Jones future is Positive & Hang Seng is Positive.
    • What is on News/TV
      • Buy on dips is good. Chasing momenetum may not good idea.
    • Positive News-flow::
      • FII keep on buying & Back to Back day gains improve sentiments.
    • Negative News-flow::
    • Bottom Line:
      • Sentiments is very Much Positive. Sentiments is also supportive to Uptrend.

    3. Game Theory ( Tug of war between Buyer & Seller)

    • From where New Buying comes?
      • A. Since Sentiments are Vey Much Positive, the Outside Trader will Buy with Good amount of aggression. B. Trader's with a short Position-"less" chance for short covering today.
    • From where new selling come?
      • A. Since Sentiments are Vey much Positive, Outside Traders will not try to short sell at all today.
    • Will buyers buys on dips?:
      • On Fall- Since the Trend is up, There will be a higher 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 Uptrend Market

    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 Avoid buying.
    • Sentiments:
      • Sentiments is very Much Positive.
    • Trading Edge:
      • My Today Trading edge points clubbing Setup & Sentiments is 72 Point. Since My Trading Edge is more than 70, I will look for Buying Opportunity only.
    • Entry on Edge:
      • Buy- When BN is below 31126.35
    • Exit on Fair price:
      • Fair Price for Today's Trade is 31360.35
      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
    Twitter https://twitter.com/abhi_9392

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