#Banknifty directions and levels for the August 2nd week.
Updated
Bank Nifty:
Current View:
Structurally, it's a range market, because whenever the market enters into double and triple corrections, it forms huge ups and downs within the range. It's very difficult to predict the proper direction. However, my expectation is the same as for Nifty. Let's look at that.
- If Monday's market opens negatively, it could find support around the 51020 level or the 78% Fibonacci retracement.
- If this happens, we can expect a 23% to 38% pullback in the minor swing. It's a minor pullback only.
- after that, if it is rejected there(23 or 38% in the minor swing), then the correction will continue if it breaks the previous low again. This is our first variation.
Alternate View:
- If the initial bounce breaks the Fibonacci level of 38% in the minor swing, it could reach the next target of 61% and 78%. These are usual range market targets.
- After that it faces rejection there (around 61% or 78%), then the range market will likely continue.
- However, we could use the same reversal confirmations here as well(.EMA 20 and the Fibonacci level of 38% breakout)
- Alternatively, if it sustains or breaks the level of 78% on the upside, then the pullback will likely continue to the level of 52526 and 52694.
Current View:
Structurally, it's a range market, because whenever the market enters into double and triple corrections, it forms huge ups and downs within the range. It's very difficult to predict the proper direction. However, my expectation is the same as for Nifty. Let's look at that.
- If Monday's market opens negatively, it could find support around the 51020 level or the 78% Fibonacci retracement.
- If this happens, we can expect a 23% to 38% pullback in the minor swing. It's a minor pullback only.
- after that, if it is rejected there(23 or 38% in the minor swing), then the correction will continue if it breaks the previous low again. This is our first variation.
Alternate View:
- If the initial bounce breaks the Fibonacci level of 38% in the minor swing, it could reach the next target of 61% and 78%. These are usual range market targets.
- After that it faces rejection there (around 61% or 78%), then the range market will likely continue.
- However, we could use the same reversal confirmations here as well(.EMA 20 and the Fibonacci level of 38% breakout)
- Alternatively, if it sustains or breaks the level of 78% on the upside, then the pullback will likely continue to the level of 52526 and 52694.
Comment
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