Trading Set Up for Banknifty on 29/08/2019

1. SET UP to Trade Nifty Bank.

  • Trend:
  • Market is not trending anywhere.But there is Mild bies on downside.
  • Market set up:
  • Today Bank Nifty Force set up is Not Supportive for Selling for FULL day. **You should look to sell on first half only.**
  • Bottom Line :
  • The Trend is Not define, But Last day Positive move can support today's down-move & give follow up on downside >> Good set up to Sell on first half.

    2. Sentiments

    • 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.
      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

    Nifty from pre-aug-opes day ,

    1. ATM PE Short had 9/12 wins , with an average expectation of 13 points with a max loss of 43 points in Aug 2008
    2. Shorting ATM-1% PE has 12/12 wins , with an average gains of 8 points

    @vishnux I was expecting your comment today as well!!

    Today you predicted good , also share the way you predict the market