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.