Bank Nifty Bulls Eye All-Time High, Face Final Gann Resistance

A Decisive Shift: FIIs Unleash a High-Conviction Bullish Offensive in Bank Nifty

In a dramatic and powerful shift from their recent behavior, Foreign Institutional Investors (FIIs) have just sent their most unambiguously bullish signal in weeks. On October 16, 2025, FIIs were massive net buyers in the Bank Nifty Index Futures, acquiring 4,200 contracts with a colossal notional value of ₹843 crores.

However, for the first time in a long while, the most critical part of the story is not one of short covering. The key is that this massive buying was accompanied by a significant net open interest (OI) increase of 2,760 contracts. This is the irrefutable signature of new, aggressive long positions being built.

The Signal is Clear: This is New Bullish Conviction

For weeks, we have highlighted how FII buying accompanied by a decrease in OI was a deceptive sign of short covering. Today’s action is the polar opposite and must be treated with the utmost seriousness. This is not the sound of bears exiting the market; it is the sound of bulls entering the battlefield.

When FIIs buy and OI increases, it means they are deploying fresh capital to make new, leveraged bets on a future rise in prices. This is not a tactical retreat to lock in profits; it is a strategic advance, signaling a fundamental change in their outlook on the banking sector.

Key Implications for Traders:

1. A Fundamental Change in Character: The market’s character has now changed. The previous dominant theme of “sell on rise” is now being directly challenged. With a large block of new institutional longs established, the market is likely to shift to a “buy on dips” mentality, as FIIs will be incentivized to defend their new positions.

2. Creation of a Powerful Support Base: The price levels at which this heavy buying occurred now become a formidable support zone. The market is unlikely to easily break below this area, as it would mean putting these new, large institutional positions into the red.

3. Fuel for a Sustainable Advance: Unlike a short-covering rally, which is technically driven and inherently fragile, a rally built on the foundation of new long positions is structurally sound. It has the backing of fresh, optimistic capital and has a much higher probability of being sustained over time.

Conclusion:

The data from October 16th is a game-changer for the Bank Nifty. After a long period of bearish positioning and tactical profit-taking, the FIIs have finally shown their hand with a high-conviction, offensive bullish move. The initiation of thousands of new long contracts is a powerful signal that should not be ignored. While one day does not make a trend, a move of this magnitude is a clear indication that the institutional sentiment is turning positive. Traders should now treat any short positions with extreme caution, as the path of least resistance has decisively shifted to the upside. The smart money has spoken, and their message is unequivocally bullish.

Last Analysis can be read here 

The Bank Nifty is currently at a critical and exhilarating juncture, where a powerful, technically-driven rally is now challenging the final significant barrier that stands between it and a new all-time high. The move, which began from a precisely timed bottom, has now entered a key resistance zone that will be the ultimate test of the bulls’ conviction ahead of the crucial weekly close.

The Foundation: A Perfect Bottom Call by Bayer Rule 6

First, it is essential to understand that the recent powerful rally was not a random or surprising event for followers of cycle analysis. As discussed in our recent video, the market registered a major bottom in perfect alignment with Bayer Rule 6, which states:

“The price is in bottom when Mars was in 16 degrees 35 minutes of some sign and plus 30 degrees.”

This powerful rule provided the temporal and mathematical foundation for the reversal, giving traders a high-conviction signal that the selling pressure was exhausted and a new up-leg was imminent. The strong advance we have witnessed this week is a direct and powerful effect of this cycle turning.

The Final Hurdle: The 4×3 Gann Angle at 57525

Having traveled a significant distance from that low, the Bank Nifty is now entering a formidable resistance zone. The immediate and most critical challenge is the 4×3 Gann Angle, which is currently positioned at 57525.

In Gann analysis, these angles represent the harmony of price and time. For a market in a powerful trend, breaking through one of these angles is a significant technical feat that often leads to a rapid acceleration. The bulls are now attempting to achieve this breakout. A decisive close above 57525 would be a major victory, signaling that they have overcome the natural resistance and have the strength to challenge the ultimate prize.

The Ultimate Target: The All-Time High and Mahurat Trading

A successful close above the Gann angle opens the door for a move towards the all-time high of 57628. This is not just a technical target; its timing is of immense psychological importance.

With tomorrow being the weekly close, the session’s final print carries extra weight. A failure at the Gann angle would be seen as a sign of exhaustion. However, a close above the angle, and especially a close at or near a new all-time high, would be the most powerful statement the bulls could possibly make.

This would create a wave of extreme optimism heading into the special Mahurat trading session on Tuesday. A market closing at its absolute peak ahead of this auspicious session would create a powerful, positive feedback loop, likely attracting fresh capital and setting a bullish tone for the festive season and beyond.

Conclusion:

The market has flawlessly followed the script, bottoming on a key Bayer Rule and rallying to a key Gann resistance. The battle lines are now clearly drawn. The bulls must conquer the 57525 Gann angle to unlock a test of the all-time high. A weekly close at 57628 is the “grand slam” scenario that would provide maximum positive sentiment for the Mahurat session. The final hours of trading this week will be critical in determining whether the bulls have the conviction to complete their perfect technical setup.

Bank Nifty Trade Plan for Positional Trade ,Bulls will get active above 57442 for a move towards 57680/57917. Bears will get active below 57204 for a move towards 56967/56730.