Technical / Chart Study of Bank Nifty FuturesEducational Purpose Only
Technical / Chart Study of Bank Nifty Futures
LTP: 3811.00
Support: 38500.00
Resistance: 38950.00 / 39250.00
38500.00 is to be considered as a crucial level as the supertrend and price action have the same support zone in the hourly chart. We can expect a steep downfall if 38500.00 is broken on the downside.
38500.00 was a resistance level till the 1st of February after which is has been effective as a support. It was broken on the same day but we can ignore the breach as the closing was well above 38500.00
The trend here looks sideways until the resistance at 38950.00 or the support at 38500.00 is breached.
Indicators:
1. Supertrend is bearish.
2. Candles are trading below 21 EMA.
3. MACD is sideways, hence neutral as of now.
4. RSI couldn’t breach the 50 mark but there is a bullish divergence, so, let’s consider it as neutral.
There is no clear trend or any other important information that we can derive from the charts so let’s skip to the indicators.
Indicators:
1. Candles are trading below the 21 EMA which is at 38951.35.
2. Supertrend is bullish.
3. MACD is neutral.
4. RSI is bearish.
Now, let’s jump to the daily charts and see what we can study there.
Here, there is an interesting point that I would like to make. If we drew a trendline from the highs made on 25th October to the high made on 13th January, it is clear the downtrend was broken on the 2nd of February.
It won’t be wise to say that the chart is now in an uptrend because we can clearly see that the trend is sideways but still better than a downtrend.
Indicators:
1. Supertrend is bullish.
2. Candles are above 21 EMA.
3. MACD is neutral.
4. RSI is bullish but there is a reversal so we will consider is at neutral.
Now, time to draw a conclusion.
Bank Nifty futures are in a sideways trend. Trading here may lead to very little profits or losses and there is nothing exciting happening.
