Bank Nifty at Record Highs: How Time Cycles & Elliott wave Predicted it
Jan 05, 2026
Neo Wave analysis, when combined with Time Cycle studies, helps create high-probability trade setups with greater accuracy by aligning price structure with timing, allowing traders to identify stronger entries, better risk control, and more reliable market reversals.
Using the power of Time cycle and Neo wave, we anticipated Bank Nifty's next move in our Aakash monthly report that was published on 11th December 2025— Check it out!
Take a look at how this move was forecasted ahead of time. Here’s the detailed research—check it out!
Bank Nifty Daily chart anticipated as on 11th December 2025
Anticipated Analysis as on 11th December 2025
RBI and Fed Rate updates:
On 5th December 2025, the Reserve Bank of India (RBI) announced its 58th Monetary Policy Committee (MPC) decision, reducing the repo rate by 25 basis points from 5.50% to 5.25%. This step is aimed at curbing high inflation while supporting economic growth. The announcement acted as an immediate catalyst for the Index; however, follow-through price action remained muted, largely due to subdued FII participation during the year-end holiday season. Momentum is expected to strengthen in the early trading sessions of 2026 once global investors return.
In parallel, the Federal Reserve in the US reduced its benchmark interest rate by 25 bps, bringing the federal funds target range to 3.50%–3.75%. This marked the third consecutive rate cut in 2025. US equity markets, including the S&P 500 and Dow Jones, rallied on the announcement, signaling positive sentiment that can indirectly benefit emerging markets like India. The Indian banking sector, sensitive to interest rate movements and foreign inflows, could see enhanced buying interest following these developments.
Daily Chart Analysis:
The daily chart indicates slight short-term weakness due to low liquidity and muted FII activity during the holiday season. Nevertheless, the broader bullish structure remains intact. Bank Nifty appears to be forming a bullish flag pattern following its all-time high of 60,114. Currently, the Index is consolidating in the 58,750–59,440 range. A break above 59440 can result into a move towards prior record highs. While a decisive break below 58750 followed by 58600 could trigger further profit booking and short-term correction.
54-Day Time Cycle:
Bank Nifty continues to respect a classic 54-day time cycle, with major swing lows consistently forming within this window. The recent low near 58,600 aligns precisely with this cycle, making it both a price and time-cycle support level. This support is expected to hold until the next cycle zone beginning 30th January 2026. A move above 60,114 would confirm a buy-side continuation in the current cycle.
Wave Perspective (Elliott Wave Analysis):
From the lows of 47,250 to the recent high near 57,000, Bank Nifty completed a clean Wave 1 of a higher-degree structure. Following this, the Index entered a corrective phase, forming Wave (2) near 54,200 in the form of a double corrective pattern. Deep and complex corrections like this often precede strong impulsive moves, reinforcing the bullish bias.
Currently, Bank Nifty is in Wave 3 of (3), which is the most explosive portion of any Elliott Wave cycle. Within this wave, a downward-sloping flag pattern is developing, which is typical of strong impulsive waves. Once this consolidation completes, a sharp upside breakout is expected. A move above 59,440 would confirm the resumption of Wave 3 of (3), with the potential to push the Index well beyond 61,000.
In a Nutshell:
Bank Nifty is setting up for a potential upside breakout while forming a classic bullish flag pattern. December’s weaker momentum is attributed to holiday-season FII inactivity, but the broader bullish structure remains intact. A break above 59,440 can trigger aggressive upside, while a break below 58,600 would require caution and could extend profit booking.
- Upside Targets: 59,440 → 59,903 → 60,686 → 61,000+
- Immediate Support Levels: 58,600 → 58,000
Bank Nifty Daily Chart Happened as on as on 05th January 2026
Happened: In our monthly report, we projected that Bank Nifty can head towards new all-time highs — and, Bang on!
After breaking decisively above the 59,440 level, Bank Nifty witnessed a sharp rally of nearly 1000 points, reaching a fresh lifetime high of 60,437 in today’s session. This move was anticipated well in advance using the combined strength of Time Cycle analysis and Wave Theory, highlighting the effectiveness of this approach in forecasting major moves.
Going ahead, the next upside target is placed near 60686. The broader trend remains firmly positive, and traders may continue to adopt a buy-on-dips strategy as long as 59,550 remains protected on the downside. A sustained break below this level would be the first sign of caution.
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