#Nifty directions and levels for the August 2nd week.
Updated
Good evening, friends! 🌺🍬 Here are the market directions for the second week of August:
Global and Local Market Overview
Last week, both global and local markets experienced significant volatility, closing with a negative candle. On the weekly chart, the market shows a moderately bullish trend, but the 1-hour chart suggests a bearish sentiment. For this week, I anticipate a moderately bearish trend. Let's delve into the details.
Nifty:
Current View:
- Nifty has completed the 5 sub-waves within the 3rd wave extension. Following this, a three-wave corrective pattern is expected.
- The declines over the past two days, along with negative global market closures on Friday, suggest a bearish start on Monday.
- If the market opens negatively, the 50% Fibonacci retracement level should act as strong support. If support holds, a 38% pullback is likely.
- This pullback could be the 2nd sub-wave of the correction. If the market rejects this pullback and breaks the previous low, the correction will likely continue, targeting levels around 24365 to 78%.
Alternate View:
The alternate variation is a bit more complicated, but I will try to explain it simply.
- If the initial pullback breaks the 38% Fibonacci level in the minor swing, it could reach the 61% and 78% retracement levels.
- Usually, the one and two formations are very difficult to predict in the Elliott Wave.
- Because the 2nd wave targets allow 90% of the 1st wave.
- So, I use a common Fibonacci method: whenever the market breaks the Fibonacci level of 38%, it most often reaches 61% to 78%.
- After that pullback, if it sustains or breaks the fib level 78%, then it may continue the rally further to the level of 25143 to 25209 (extension variation).
- Or if it faces rejection at either one of the resistance levels (61% or 78%), it could turn into a correction.
- However, we could take additional confirmation for the reversal that if both the EMA 20 and the Fibonacci level of 38% in the minor swing break, we can expect a reversal.
Global and Local Market Overview
Last week, both global and local markets experienced significant volatility, closing with a negative candle. On the weekly chart, the market shows a moderately bullish trend, but the 1-hour chart suggests a bearish sentiment. For this week, I anticipate a moderately bearish trend. Let's delve into the details.
Nifty:
Current View:
- Nifty has completed the 5 sub-waves within the 3rd wave extension. Following this, a three-wave corrective pattern is expected.
- The declines over the past two days, along with negative global market closures on Friday, suggest a bearish start on Monday.
- If the market opens negatively, the 50% Fibonacci retracement level should act as strong support. If support holds, a 38% pullback is likely.
- This pullback could be the 2nd sub-wave of the correction. If the market rejects this pullback and breaks the previous low, the correction will likely continue, targeting levels around 24365 to 78%.
Alternate View:
The alternate variation is a bit more complicated, but I will try to explain it simply.
- If the initial pullback breaks the 38% Fibonacci level in the minor swing, it could reach the 61% and 78% retracement levels.
- Usually, the one and two formations are very difficult to predict in the Elliott Wave.
- Because the 2nd wave targets allow 90% of the 1st wave.
- So, I use a common Fibonacci method: whenever the market breaks the Fibonacci level of 38%, it most often reaches 61% to 78%.
- After that pullback, if it sustains or breaks the fib level 78%, then it may continue the rally further to the level of 25143 to 25209 (extension variation).
- Or if it faces rejection at either one of the resistance levels (61% or 78%), it could turn into a correction.
- However, we could take additional confirmation for the reversal that if both the EMA 20 and the Fibonacci level of 38% in the minor swing break, we can expect a reversal.
Note
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