Trading Set Up for Banknifty on 19/05/2020

#1
1. SET UP to Trade Nifty Bank.
  • Trend: (⇔ - Notdefine trend)
Market is not trending anywhere, But there is mild Bies on Upside.
  • 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 only buy on Dips or lower range.
  • 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.
2. Sentiments

  • Global markets:
  • Dow Jones future is Extremely positive & Hang Seng is Positive.
  • What is on News/TV
  • Market is trading on range, If market has to to bounce, it has to bounce form here.
  • Positive News-flow::
  • Reliance stake sell is positive, Global market is Positive.
  • Negative News-flow::
  • Stimulas packae has not made i impact as expected, thus it is mild negative.
  • Bottom Line:
  • Sentiments is very Much 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 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 '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 only buy on Dips or lower range.
  • Sentiments:
  • Sentiments is very Much Positive.
  • Trading Edge:
  • My Today Trading edge points clubbing Setup & Sentiments is 71 Point. Since My Trading Edge is more than 70, I will look for Buying Opportunity only.
  • Entry on Edge:
  • Buy- When BN is Between 18799-18906
  • Exit on Fair price:
  • Fair Price for Today's Trade is at least 19075 - 19167
  • Bottom Line for Day :
  • HRDAY-Enter at fair price & Book Profit at fair price
 
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