Bank Nifty Bang On!! Neo wave cannot be more accurate.
Feb 06, 2025
Neo wave is the GPS of the market that helps to understand the overall maturity of the trend. Neo wave is a method that is used to identify price pattern and predict market movements. Bank Nifty has been moving precisely as per neo-wave counts. Check out this example of how we applied Bollinger Bands and Neo wave to identify this rise of more than 800 points and made a high of 50553 levels.
Bank Nifty moved as anticipated and Bang on!! We achieved both our targets in 2 trading sessions. The following research is picked up from the daily Agni Bank Nifty report
Bank Nifty Daily Chart: Anticipated as on 03rd February 2025
Bank Nifty Daily Chart: Anticipated as on 03rd February 2025
Wave Analysis as on 03rd February 2025:
In the previous session, due to Union Budget 2025, Bank Nifty showed movement of nearly 1000 points during the day. In the first half of the session, prices showed a sharp rise and touched the 50k mark for the first time after 8th January 2025. However, prices failed to sustain above the 50k mark, and a sharp reversal on the downside of nearly 1000 points was seen. Overall, in Saturday’s session, Bank Nifty gyrated between gains and losses on the event day. As a result, we saw the formation of the neutral candle on the daily chart.
In this Budget, big tax relief for individuals was announced which can boost consumption for the middle class. Also, Special Window for Affordable Mid-income Housing scheme was announced which aims to complete additional 1 Lakh affordable housing units which is positive for the Banking and Housing Finance sector.
On the daily chart, since 27th January prices still haven’t closed below previous day’s low which keeps daily bias in favor of bulls as long as we do not see a close below previous day’s low. Also, prices have formed Double bottom pattern and now trading at the neckline of it. A close above 49700 can confirm breakout of the pattern which can result into fresh buying in the index.
As per wave perspective, wave c might have completed on the downside. For confirmation, a break above 50000 is must for the same.
In nutshell, overall Bank Nifty is at deciding point. A break above 49700 can result into fresh buying towards 50000 or higher. On the downside 48900 is the nearest support. A breach below it will be a sight of concern.
Trading strategy for Bank Nifty (Spot): Long positions can be created above 49700 levels with the stoploss of 49400 levels and target of 50000 followed by 50200 levels. Short positions can be created below 48900 with the stoploss of 49200 as stoploss and target of 48600 followed by 48400.
Trade set up for Futures – Futures positions can be initiated as per spot levels given above.
Trade set up for Options buying: Buy Nifty 27th February 49500 CE if Bank Nifty breaks above 49700. Buy Nifty 27th February 48600 PE if Bank Nifty breaks below 48900 levels. For risk reward refer above strategy as per spot.
Bank Nifty Daily Chart: Happened as on 06th February 2025
Happened- As we expected after the budget, Bank Nifty saw a rise and breached its 50k mark and Bank Nifty moved as we anticipated and BANG ONN!! We successfully captured a move of more than 800 points and made a high of 50553 levels. The Index achieved our targets in futures and options as well.
It is fascinating to notice how Neo wave works well on stocks as well as on indices. One can easily derive the path ahead by combining it with simple indicators which can lead to surprising results!!
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