Trading Set Up for Banknifty on 28/06/2019

1. SET UP to Trade Nifty Bank.

  • Trend: (⇔ - Not define trend)
  • Market is not trending anywhere, But there is mild Bies on Upside.
  • Market set up :(⇓- Opposite 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 rise)
  • The Difference between Bank Nifty future and spot (Basis) is now 103 Points. The Basis has risen from last day about 92 points.
  • 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.>> Basis rise.

    2. Sentiments

    • Global markets:
    • Dow Jones future is Positive & Hang Seng is Negative.
    • What is on News/TV
    • Market has Breakout- Bank nifty for sure. BUY ON DIPs texture is intact.
    • Positive News-flow::
    • Negative News-flow::
    • 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 Not Supportive for Buying. So, Today is Bad set up to buy. You should Avoid buying.
    • Sentiments:
    • SentIments is Mild Positive.
    • Trading Edge:
    • My Today Trading edge points clubbing Setup & Sentiments is 36 Point. Today, I 'don't have Any Edge', So I will ' Not Trade Today'.
    • Entry on Edge:
    • Buy- When BN is below 31132.5
    • Exit on Fair price:
    • Fair Price for Today's Trade is 31367.5
      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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