A video claims a rare nine-wave triangle pattern is forming in the Nifty and BankNifty charts, comparing it to “9 Navratnas” and framing the move as nine distinct waves.
It says the market is now in the c-wave, described as the current decline, and adds that this phase may act as a trap for bearish trades.
Nine Wave Triangle Pattern
The video sets a d-wave bounce target near 25,771, and also outlines zones for the d-wave and a final e-wave drop before a later upside rally.
The author is Abhishek H. Singh, described as a financial analyst with over a decade of experience and a focus on Elliott Wave Theory.
A complex nine-wave pattern appears to be dictating the market’s direction, suggesting we are in the final stages of a downward c-wave. The recent dip below 24,500 seems to be shaking out weak hands amidst renewed concerns over service sector inflation. We believe this downward pressure is nearing its exhaustion point.
Derivative traders should now prepare for a sharp d-wave rally, with an anticipated target near 25,771. Recent FII data shows their net selling has reduced significantly in the last week of January 2026, hinting they are positioning for an upswing. This bounce could be sharp and catch many bears off guard.
Derivative Trading Considerations
With the India VIX currently elevated above 15, selling out-of-the-money put spreads could be an effective way to capitalize on both the expected directional move and a potential drop in volatility. Alternatively, buying at-the-money call options for the March 2026 expiry offers a direct play on the anticipated rally. Staying nimble will be key as this is likely a temporary up-move.
It is crucial to view this potential rally as a trap within the larger consolidation pattern, not the start of a new bull market. Looking back to the fourth quarter of 2025, we saw a similar deceptive rally that quickly reversed, so taking profits near the 25,700 level is advisable. The structure suggests a final e-wave drop will follow this bounce.
Once the d-wave rally exhausts itself, traders should be prepared to reverse their positions for the final e-wave decline. This subsequent drop will likely complete the entire nine-wave triangle structure. This sets the stage for the next major, sustained trend, but not before one last downward thrust.
