#Banknifty directions and levels for August 7th.

Aug 7

Even though the previous session opened with a gap-up, it didn’t sustain,BankNifty maintained their bearish bias. Today also the market may open with a minimum of 200 points positive. What about today?

If this happens structurally, it could turn into a range market. Range market movements are usually difficult to predict. However, my expectation is that if the market opens with a gap-up and breaks the 38% level solidly, we can expect the next target at 50,468. After that, if it consolidates, the pullback will continue. On the other hand, if it rejects this level, the range market will likely continue.

Alternatively, if the gap-up doesn’t sustain, it may consolidate within the previous day's range. In this variation, a correction is anticipated only if it falls below the previous low.