#Nifty directions and level for July 18th.
Good morning, friends! 🌺🍬 Here are the directions for July 18th:
The global market has a bullish sentiment (based on Dow Jones). Our local market has a moderately bullish sentiment. Today, the market may open with a neutral to slightly gap-down start because the Gift Nifty indicates a 20-point decrease.
Nifty:
In the previous trading session, Nifty opened with a gap-up but did not rise much higher. Structurally, it is showing consolidation, which is likely to continue in the same direction. However, this will only happen if it breaks the previous high.
Given that Gift Nifty suggests a gap-down opening today, the scenario changes slightly.
So, If the market declines initially, we can expect a 23% to 38% level of correction. After that, if it finds support at these levels, the consolidation may continue. For a continuation, it must break the 38% Fibonacci level solidly.
Alternatively, if the gap-down doesn't sustain and the market pulls back, we can expect consolidation until it breaks the previous high. If it breaks the previous high with a solid candlestick structure, a rally continuation is expected, with some consolidations around the resistance levels. On the other hand, if it doesn't break with a solid candlestick structure, the market may continue in a diagonal pattern, meaning it won't generate much premium today. (I have plotted a bow and tie pattern).
Note: You can follow the same sentiment if it opens with a gap-up movement.
The global market has a bullish sentiment (based on Dow Jones). Our local market has a moderately bullish sentiment. Today, the market may open with a neutral to slightly gap-down start because the Gift Nifty indicates a 20-point decrease.
Nifty:
In the previous trading session, Nifty opened with a gap-up but did not rise much higher. Structurally, it is showing consolidation, which is likely to continue in the same direction. However, this will only happen if it breaks the previous high.
Given that Gift Nifty suggests a gap-down opening today, the scenario changes slightly.
So, If the market declines initially, we can expect a 23% to 38% level of correction. After that, if it finds support at these levels, the consolidation may continue. For a continuation, it must break the 38% Fibonacci level solidly.
Alternatively, if the gap-down doesn't sustain and the market pulls back, we can expect consolidation until it breaks the previous high. If it breaks the previous high with a solid candlestick structure, a rally continuation is expected, with some consolidations around the resistance levels. On the other hand, if it doesn't break with a solid candlestick structure, the market may continue in a diagonal pattern, meaning it won't generate much premium today. (I have plotted a bow and tie pattern).
Note: You can follow the same sentiment if it opens with a gap-up movement.
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