Bank Nifty Targets using Neo wave and price action
Dec 19, 2024
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. Checkout this example of how we applied Bollinger Bands and Neo wave to identify this fall of more than 1300 points and made a low of 51263 levels.
Bank Nifty moved as anticipated and Bang on!! We achieved both our targets in two trading session. The following research is picked up from the daily Agni Bank Nifty report
Bank Nifty Daily Chart: Anticipated as on 18th December 2024
Bank Nifty Hourly Chart: Anticipated as on 18th December, 2024
Wave Analysis as on 18th December 2024:
In the previous session, Index remained under pressure for the whole day after FII continues selling. Bank Nifty showed a correction of more than 700 points. In this fall, AU Bank, IndusInd Bank and Canara Bank were the major contributors. At the end, prices formed a strong bearish candle and also gave a close below previous day's low which is a sign of weakness.
Currently all eyes are on US Fed monetary policy outcome as it will affect market sentiments. Currently prices are trading close to important price action area which is near 52580 levels. A close below it will confirm about the daily trend change to negative side.
On the hourly chart, wave a (blue) got completed on the upside and now the fall is in form of wave b. To understand wave pattern further price action is needed.
In nutshell, overall Bank Nifty is at important juncture. Next 2 days price action will help to set the tone. For now, a break above 53200 is must for fresh buying to emerge. While on the downside a break below 52580 can resume selling with the targets of 52180 or lower.
Trading Strategy for Bank Nifty (Spot)- short positions can be created below 52580 with the targets of 52180 followed by 51800 and stoploss of 52980 levels.
Trade set up for Positional Futures – Futures positions can be initiated as per spot levels given above.
Trade set up for options: Buy 24th Dec 52800 PE if Bank Nifty breaks below 52580 spot levels and follow above strategy as per spot for risk reward.
Bank Nifty Hourly chart: Happened as on 19th December 2024
Happened- As we were bearish on Bank Nifty, the index moved as expected and lost more than 1300 points in the matter of 2 trading days and Bang On!! Bank Nifty achieved both our given targets and made a low of 51263 levels in today’s session. We were able to capture this entire fall with the help of Neo wave.
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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