Bank Nifty Below 55000: Is More Downside Ahead as Time Cycle Nears?

Advanced Neo Wave analysis when combined with price action Time Cycle and Gann Square of 9 can provide a useful framework for identifying potential turning points and trade setups from a short- to medium-term perspective.

Bank Nifty Daily chart with Neo Wave

Bank Nifty Daily chart with Gann Square of 9

Neo Wave and Time Cycle analysis

• From a wave perspective, the rise from March 2025 to February 2026 appears to have unfolded as a corrective Zigzag, indicating that the move was corrective rather than a sustained impulsive trend.
• The correction appears to have completed Wave B near the lifetime high of 61700, after which Bank Nifty witnessed a sharp decline in Wave C.
• The current rise is overlapping in nature, indicating a possible Triangle or Diametric pattern.
• Bank Nifty is also approaching its 54-period Time Cycle which is starting today with the main cycle due around 6th October 2026, during which prices are likely to remain under pressure.
• The cycle zone will therefore be important for monitoring as short term low formation is expected.

Gann Square of 9

• The horizontal lines represent Gann Square of 9 levels, which have repeatedly acted as support and resistance.
• In today’s session, the index broke below the 55108 Gann level, indicating weakness and shifting focus towards the next key level at 54173.
• The combination of Time Cycles and Gann levels can help identify important price-time relationships and provide a framework to understand the market’s underlying structure.

Conclusion:

• In a nutshell Bank Nifty remains in a sell-on-rise mode, with 54173 as the next key Gann support. The recent breakdown below 55108 keeps the structure weak. Fresh buying should be avoided unless the index sustains a close above 55400 levels.

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