#Nifty directions and levels for December 19th.
Good morning, friends! 🌞
Here are the market directions and levels for December 19th.
Market Overview:
After the Fed rate cut, the Dow Jones fell drastically and ended with a negative change of 2.5%. This also affected the Nifty. Therefore, today the market may open with a significant gap-down, indicating that the Nifty is expected to start 330 points lower.
The global sentiment suggests there is a bearish bias. If you look at the charts from a broader perspective, the Nifty is showing a negative trend, while the Bank Nifty appears to be range-bound. Thus, both indices are displaying slightly different biases. However, my expectation is that, even though the Bank Nifty has a range-bound structure, it could reach a minimum correction of 78% in the minor swing. More or less, the current trend indicates a negative outlook. If the gap-down sustains today, we can expect a continuation of the correction with some consolidation. A reversal could be considered if there is a breakout at the EMA 20 or the 38% Fibonacci level in the minor swing. Until these factors occur, the trend could remain bearish.
Additionally, I checked the volume profile and EMA 200 for long-term trend projections. Both the Nifty and Bank Nifty have yet to break the EMA 200, which means the higher degree trend is still bullish until it breaks that level. However, the volume profile is showing initial indications of a reversal in the Nifty, while the Bank Nifty has not yet shown this because the 51,500 level (in futures contracts) is providing good support based on the volume profile.
Conclusion: There is no clear direction yet from the combination of the Nifty and Bank Nifty charts. Therefore, we should approach this correction as a minor trend only.
Here are the market directions and levels for December 19th.
Market Overview:
After the Fed rate cut, the Dow Jones fell drastically and ended with a negative change of 2.5%. This also affected the Nifty. Therefore, today the market may open with a significant gap-down, indicating that the Nifty is expected to start 330 points lower.
The global sentiment suggests there is a bearish bias. If you look at the charts from a broader perspective, the Nifty is showing a negative trend, while the Bank Nifty appears to be range-bound. Thus, both indices are displaying slightly different biases. However, my expectation is that, even though the Bank Nifty has a range-bound structure, it could reach a minimum correction of 78% in the minor swing. More or less, the current trend indicates a negative outlook. If the gap-down sustains today, we can expect a continuation of the correction with some consolidation. A reversal could be considered if there is a breakout at the EMA 20 or the 38% Fibonacci level in the minor swing. Until these factors occur, the trend could remain bearish.
Additionally, I checked the volume profile and EMA 200 for long-term trend projections. Both the Nifty and Bank Nifty have yet to break the EMA 200, which means the higher degree trend is still bullish until it breaks that level. However, the volume profile is showing initial indications of a reversal in the Nifty, while the Bank Nifty has not yet shown this because the 51,500 level (in futures contracts) is providing good support based on the volume profile.
Conclusion: There is no clear direction yet from the combination of the Nifty and Bank Nifty charts. Therefore, we should approach this correction as a minor trend only.
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