Bank Nifty Targets using Neo wave and Ichimoku Cloud

 Neo wave is the GPS of the market that helps to understand the overall maturity of the trend. Bank nifty has been moving precisely as per neo wave count. Checkout this example of how we applied Ichimoku Cloud and Neo wave to identify this fall. Bank nifty moved as anticipated and Bang on!! We achieved both our targets in one trading session.  Following research is picked up from daily Agni Bank Nifty report

Bank Nifty Hourly Anticipated as on 21st November, 2024
Wave Analysis Anticipated as on 21st November 2024:

Bank Nifty saw a sharp move on upside on 19th November but prices gave away all the gains in the final hour of trading forming a big shadow on upside and small body candle. This shows rejection from higher levels and break back below the low of prior trading day near 50400 will be bearish. On upside crossing 51000 is must which also has high calls open interest build-up. 

On the daily chart, since past 3 days, Bank Nifty is forming neutral candles consecutively suggesting indecisiveness. Breach below 50400 will resume down move in this index towards 50100 or lower levels. On the other hand, a break above 51000 can result into short term pullbacks. 

On the hourly chart, as per wave perspective, internal wave e(red) looks to have started to unfold on the downside in form of Diametric pattern. For confirmation, decisive break below 50400 is needed.

In a nutshell, below 50400 will turn price action bearish for Bank Nifty for move to 50100 or lower levels. On the daily chart, since past 3 days, Bank Nifty is forming neutral candles consecutively suggesting indecisiveness. For now, a break below 50400 is must for selling to resume on the downside.

Trading Strategy for futures – Short positions can be created below 50400 with the stoploss of 50750 and targets of 50100 followed by 49900. Long positions can be created above 51000 with the stoploss of 50700 and targets of 51300 followed by 51500 levels.

Bank Nifty Happened as on 21st November 2024
Happened – In today’s report, we were still bearish on Bank Nifty. After breaching 50400 levels, Bank Nifty moved as expected losing more than 600 points and achieved both our given targets in a single trading session. We captured this entire fall with the help of Neo wave with simple indicators.

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