Bank Nifty Futures Analysis– 28Apr2021

Please see this trend line analysis on Bank Nifty lifetime chart. This is a log chart, which captures the life chart very well. In technical terms, it can be considered a “wedge breakdown” that happened in Feb 2020, which is always going to be a fast and powerful correction. In this case, Bank Nifty futures lost 50% of their value in 6 weeks.

Going ahead, as the chart suggests, Bank Nifty futures will face strong resistance on their next upmove above 37K. In fact, there is a zone of resistance between 37-40K. And above 40K, Bank Nifty futures will race towards 50K. The most importance question is this: can we consider the current correction to be over, and 16K as the base that won’t get broken? Looks like yes, that’s the case. However, we may see correction till 28K even as part of the upmove.

Nasdaq Futures Analysis– 18Mar2021

Nasdaq futures (NQ) trading has been volatile in the past week. Nasdaq futures hit our target of 13,250 and went up till 13,262 in a flash (after US Fed statement on holding interest rates down till 2023), but the Nasdaq futures could not hold the gains, and started losing all the gains. The momentum indicator (CCI) has moved sharply lower, and we will need the momentum indicator to stabilize and reverse in a reliable manner, for new long trades to start. 12,500 should act as a strong support, and the Nasdaq futures are likely to go up again and retest 13,000 in the next 2-3 days. There is resistance at 13,300 level.