1. SET UP to Trade Nifty Bank.
- Global markets: Dow Jones future is Extremely Nagative & Hang Seng is Nagative.
- What is on News/TV Since today is expiry, it can expand its range on any side. First half you should look to sell & then second half Lighten up the short position!
- Positive News-flow:: Single brand retail reform & Contract manucaturing for FDI.(May not impact stock market today)
- Negative News-flow:: Global clue are terrible & FII are in Selling mode only. FInancial will remain in pressure as Bond are sulking due to RBI dividend.
- Bottom Line: Sentiments is very Much Negative. Sentiments are also supportive of down move.
3. Game Theory ( Tug of war between Buyer & Seller)
- From where New Buying comes? A. Since Sentiments are Very Much Negative, the Outside Trader will postpone their Buying.
- From where new selling come? A. Since Sentiments are very much Negative, Aggressive short Selling expected from outside Trade. B. Trader's with Long Position- "some chance" for Long unwind today.
- Will there be Resistance from 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 for full day, But first half sellling is good idea.
- Sentiments: Sentiments is very Much Negative.
- Trading Edge: My Today Trading edge points clubbing Setup & Sentiments is -98 Point. Since My Trading Edge is less than -70, I will be only looking for shorting opportunity for Today.
- Entry on Edge: Sell- When BN is above 27757.3
- Exit on Fair price: Fair Price for Today's Trade is at least 27564.3
- Stoploss: One you get a entry, You should follow 70/100 point stoploss, without fail.