When I started my trading career almost 6 years back, I didn’t even know what was nifty future and why people traded nifty and not sensex. After going though few years of learning experience I saw that Nifty future was the better instrument to trade. However I did mostly intraday trading then.
From my personal experience if you apply technical analysis to nifty future, you will find that nifty future is in your control and most of the time you will predict correct moves. What I want to say is Nifty future react to technicals very well. But many times, even though traders are right to predict small moves in nifty but unable to make most of it.
So this made me to do some more research and finally came up with a solution. Solution is very simple, do your technical analysis on Nifty future and then take the positions on bank nifty future. Just for example: If nifty future is trading at support level and most likely to bounce then I will take long positions in Bank nifty future exactly when nifty future approaches support level. As bank nifty future has high beta so more movement will be seen in Bank nifty future than nifty future. Hence making maximum gains from technical analysis on nifty future.