Monday, December 9, 2024

Bank Nifty - How to identify a move by combining Neo wave and Gann

Neo wave along with price action helps to form powerful setups with good accuracy. In the previous monthly report dated on 22nd November 2024, we anticipated a possible pullback in Bank Nifty and it moved precisely as expected.

Take a look of how we anticipated a pullback in Bank Nifty. Here is the detailed research: -

Bank Nifty Weekly chart – Anticipated on 22nd November 2024
Bank Nifty Daily chart with Bollinger Bands – Anticipated on 22nd November 2024
Bank Nifty Hourly chart– Anticipated on 22nd November 2024
Wave Analysis as on 22nd November 2024:

In the previous month, Bank nifty experienced a sharp decline in the first week of October 2024, followed by a broad range bound movement between 52495 and 50770 levels. Major banks like IndusInd Bank, Kotak Mahindra Bank, and Axis Bank posted disappointing quarterly results losing -27%, -6.63%, and -5.90% respectively in the previous month. As the majority of the private banks underperformed, the index failed to maintain its highs and the index also broke support of 51200 & made a low near 49780 on 21st November 2024 before reversing up again!

Weekly Chart – the Index has still not closed back above its prior weekly high and it’s still trading below the mid Bollinger Bands® levels. This keeps the medium-term trend on the downside however, we can expect short-term pullback on the upside given the sharp reversal from the important support near 49800 levels.

Daily Chart - Recently, the index formed a hammer candlestick pattern near a crucial support trendline, followed by an upward bounce which might suggest a pause in the ongoing downtrend. If Bank nifty sustains above its Gann level of 51416 levels, a deeper pullback can then be expected up to the next Gann level which is at 52327.

On the other hand, a break below 50508 would indicate that selling has resumed and a move till 49675 can be expected which is an important support level.

Hourly Chart - Since past 2 days not a single hourly candle has given a close below previous candle’s low which suggest strength.

As per the wave perspective, Bank Nifty is showing a short-term pullback in a medium-term downtrend. A break above 51416 can result into a deeper up move which will also confirm that the entire fall is complete in the form of Diametric pattern and we are seeing retracement of the fall on the upside.

In a nutshell, Bank Nifty is at a crucial juncture. Looking at the price action, we can expect short-term upside pullback before the downtrend resumes. The next few days of price action will further confirm this scenario. A break above 51416 can take prices to next Gann level of 52327.

Bank Nifty Happened as on 5th December, 2024:
Happened:

In our past monthly report, we mentionedif Bank nifty breaks 51416 levels then we can expect a pullback towards 52327 levels which is also a Gann level, and BANG ON!! Bank nifty moved precisely and achieved both our given targets within 8 trading sessions and made a high of 53387 levels.

We were able to capture this rise of more than 1600 points by using Neo Wave and Gann.  It is amazing to see how these advanced methods get aligned together.

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