Bank Nifty using Ichimoku cloud + Neo+ Fibonacci
Bank Nifty has been moving precisely as per Neo wave count. Checkout this example of how we applied Ichimoku cloud and Fibonacci along with Price Action to identify the wave counts and predict the price movement.
The following research is picked up from the daily Equity Research Report – The Financial Waves short term update
Bank Nifty Daily Chart (As on 13th March 2023)
Bank Nifty Hourly Chart (As on 13th March 2023)
Wave analysis as on 13th March 2023
In the Friday’s session, Bank Nifty opened with a huge gap down of nearly 450 points due to weak global cues. Index witnessed a selling pressure throughout the day and as a result prices formed a big red candle and closed with a huge loss of -1.87%. Also, we have shown Ichimoku cloud. Wherein, prices have bounced back on the downside by taking resistance of the cloud. This suggests that as long as price holds respects the cloud medium term tone is likely to remain negative. As per wave perspective, wave 4 is moving on the downside.
On the hourly chart, we can see that prices are moving down by moving in lower high low fashion. This keeps bias looks negative as long as we do not see a close above previous candle’s high. As per wave perspective, wave (a) has completed on the upside and next leg is unfolding on the downside which has retraced more than 61.8% of prior wave a and we can expect it to go towards 78.6%. However, fall was sharp so possibility of a sudden reversal cannot be ruled out. One can use this opportunity to ride the trend.
In short, Bank Nifty looks sideways to negative. Use pullbacks as a shorting opportunity for a move towards 40150 as long as 40850 holds on the upside.
Bank nifty Hourly chart (Happened as on 13th March 2023)
Happened
Bank Nifty opened with a minor gap down and later showed a good pullback. As we mentioned that pullbacks can be used to ride the trend and prices moved precisely and not only achieved our target of 40150 but also moved much lower and made low of 39575. This entire fall of almost 2.5% we have been able to capture successfully with the help of simple indicator, Neo wave and Fibonacci.
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