Bank Nifty’s Fall Predicted with the help of Neo Wave and Bollinger Bands.

Neo wave along with price action helps to form powerful setups with good accuracy. We anticipated a fall in Bank Nifty. The index moved precisely as expected!

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 fall of nearly 500 points in a day and made a low of 48734 levels.

Bank Nifty moved as anticipated and Bang on!! We achieved both our targets in a day.  Following research is picked up from the daily Agni Bank Nifty report.

Bank Nifty Daily Chart: Anticipated as on 12^th February 2025
Bank Nifty Daily Chart: Anticipated as on 12^th February 2025Wave Analysis as on 12^th February 2025:

Bank Nifty faced resistance of the Gann level of 50513 and reversed on the downside from it and witnessed fall of nearly 1400 points in 5 trading sessions. This fall has retraced 50% of prior rise which started from 27th January 2025.

Also, since 6th February not a single candle has given a close above prior day's high which suggests weakness in the Index. In the previous session, Bank Nifty closed in red for the 5th consecutive trading session and lost more than -1%. In this fall, Punjab National Bank, Canara Bank and Bank of Baroda were the top contributors in the fall.

On the daily chart, prices have completed its journey towards the mid Bollinger bands® after reversing from the upper bands. For now, a decisive break below 49250(mid bands level) can accelerate further selling pressure.

As per wave perspective, currently bigger wave Y is ongoing on the downside in form of complex correction. This wave Y is further subdividing. Wherein internal wave a(red) has completed on the upside and now wave b is unfolding on the downside.

In nutshell, trend for Bank Nifty has shifted to bearish. A breach below 49250 can drag the price lower towards 48900 followed by 48500. On the upside 50040 is the crucial resistance.  A break above it can be a first sign of short-term trend change.

Trading strategy for Bank Nifty (Spot) For today, short positions can be created below 49250 with the targets of 48900 followed by 48500 and stoploss of 49550 levels.

Trade set up for Futures – Futures positions can be initiated as per spot levels given above.

Trade set up for Options buying: Buy Bank Nifty 27th February 49700 PE if Bank Nifty breaks below 49250 levels on the upside. For risk reward refer above strategy as per spot.

Bank Nifty 15 mins Chart:  Happened as on 12^th February 2025Happened as on 12^th February 2025: -

As we were bearish on the Index and Bank Nifty moved precisely as expected. Prices witnessed a fall of more than 500 points from our given levels in the matter of 1 day and BANG ON!! Bank Nifty achieved both our given targets and made a low of 48734 levels in today’s session. We were able to capture this entire fall with the help of Neo wave and a simple indicator.

As per the wave perspective, bigger wave Y is ongoing on the downside which is further sub diving in nature. Wherein internal wave a(red) has completed on the upside and now wave b is unfolding on the downside.

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!!

Brahmastra (Mentorship) – Learn the science of trading with complete handholding and live trading sessions, along with stock selection algos and options trading combined with Neo wave strategy, Know more here

Trishul Membership – Options Trading with Elliott wave, Neo wave, Ichimoku cloud, and sacred science of trading & forecasting is covered in the Trishul membership program scheduled on 22^nd – 23^rd February. Fill out the form below for more details