A Perfect Storm: Bank Nifty’s 6-Day Rally Collides with Gann Resistance and a Key Lunar Cycle

Foreign Institutional Investors (FIIs) maintained their Bullish stance in the Bank Nifty Index Futures on 07 Oct 2025 market by Buying 2906 contracts worth 575 crore. However, this move resulted in a net open interest (OI) decrease of 1642 contracts

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The Bank Nifty has been on an impressive and relentless tear, staging a powerful rally for six consecutive days. This display of bullish force was initially ignited by the Reserve Bank of India’s market-friendly measures, which sparked a fierce short-covering rally and renewed confidence in the banking sector. The bulls have been in absolute control, pushing prices higher with little resistance.

However, this powerful trend has now run directly into its most significant challenge yet: a formidable technical barrier in the form of the 1×1 Gann Angle.

The Immovable Object: The 1×1 Gann Angle

In the world of Gann analysis, the 1×1 angle is the most important and sacred of all angles. It represents the perfect balance between price and time (one unit of price for one unit of time). When a market is trending above the 1×1 angle, it is in a strong bull market. When it is below, it is in a bear market.

For a market rallying from below, touching this 1×1 angle from the underside represents a test of a major, and often ruthless, resistance level. This is not a minor hurdle; it is the primary line of balance, and the market’s reaction to it is of paramount importance. As our charts show, the six-day rally has carried the Bank Nifty precisely to this critical inflection point.

The Catalyst: The Lunar Cycle Turns Up the Pressure

What elevates this technical setup from a simple test of resistance to a high-stakes event is the crucial element of time. The market is not just testing this key price level on a random day. It is doing so precisely as we enter a window of influence from a key Lunar Cycle, as discussed in our recent video.

This is a classic Gann principle in action: when a significant price level is met on a significant time cycle date, the probability of a major reaction—either a sharp reversal or a powerful breakout—increases exponentially. The market is being squeezed from two directions: price resistance from above and time-cycle pressure from the calendar.

The Strategic Outlook: A Market at its Breaking Point

This confluence of events has brought the Bank Nifty to a clear and decisive breaking point. The period of easy, one-directional upward movement is over. The market is now being forced to make a critical decision.

• The Bearish Case (Rejection): The highest probability scenario is that the 1×1 Gann angle will act as formidable resistance. The 6-day rally has likely exhausted the initial burst of buying momentum, and this angle provides the perfect technical reason for profit-taking to begin. A rejection here could trigger a sharp reversal, potentially erasing a significant portion of the recent gains as the Lunar cycle’s influence is felt.

• The Bullish Case (A Decisive Breakout): If the bulls can muster the force to push and, more importantly, close above this 1×1 Gann angle, it would be a technical feat of immense strength. A breakout above this line of balance would be a major victory, signaling that the rally is not just a short-covering reaction but the start of a new, sustainable, and powerful up-leg.

Conclusion:

This is no longer just a rally; it is a critical test. The irresistible force of a 6-day buying spree has met the immovable object of the 1×1 Gann angle, all on a key time cycle date. The market’s reaction at this precise juncture will likely dictate the trend for the coming days and weeks. Watch the price action at this angle with extreme vigilance; it is about to give its verdict.

Bank Nifty Trade Plan for Positional Trade ,Bulls will get active above 56351  for a move towards 56586/56821/57056. Bears will get active below 56116  for a move towards 55881/55646/55411